China to open doors to retail giants
Trade commitments to be honoured
China is to end strict rules on investment by retailers from outside the country by the end of the year.
Official Chinese news agencies said China would end rules which require incoming investors to form partnerships with local countries. The Chinese government had agreed to abolish joint-venture requirements as part of commitments made to the World Trade Organisation.
The move comes as Kingfisher of the UK announces plans for further expansion of its B&Q chain in China, while Tesco is reported to be in negotiations to buy a stake in a Chinese hypermarket chain owned by Ting Hsin International of Taiwan.
The Beijing government is also pledging to end restrictions on the location and number of foreign-owned chains.
Sales generated by foreign retailers accounted for less than 3.5 per cent of total retail sales last year, according to the figures quoted by the Chinese media. Carrefour of France headed the table with sales in China up 25.7 per cent to 13.4bn yuan.
Wal-Mart with 33 chain stores across the country, saw sales of 5.85 bn yuan in sales, and spent $15bn sourcing goods in China.
