OPENING UP: New regulations on natural disaster relief promote transparency (XINHUA)

Investment Climate Boost

As foreign-invested enterprises are becoming the important component of the national economy, China is attracting foreign capital to the high and new technology industry, modern service industry, new energy and energy-saving and environmental protection industry and high-end manufacturing, according to the latest directives issued by the State Council. The directives also encourage foreign investment to shift from the eastern to the central and western regions to develop the labor-intensive industries qualified for environmental protection in accordance with the country's western region development strategy.

Meanwhile, in order to further facilitate the flow of the foreign investment into China, foreign capital shall be encouraged to participate in the restructuring and merger of domestic enterprises by means of equity participation and acquisition. A-share listed companies shall be supported to bring in domestic and overseas strategic investors. The qualifying firms could issue shares, corporate bonds and mid-term bills in the Chinese market. Analysts said the move aims at alleviating the worries that the investment environment in China is becoming unfavorable toward foreign companies.

Website: http://www.gov.cn/zwgk/2010-08/19/content_1683980.htm

Drug Control

The State Food and Drug Administration (SFDA), China's drug watchdog, issued regulations on its website concerning the management of 4-methylmethcathinone (4-MMC). The drug, a psychoactive stimulant, was listed as a class one psychotropic drug substance from September 2010.

The rules note that due to cases of 4-MMC abuses in other countries, China seeks to prevent the same from happening within its borders. The 4-MMC has never been sold on the Chinese drug market. No companies or individuals are permitted to be involved in 4-MMC related research or business without official permission, according to the SFDA. Analysts said that all illegal activities involving psychotropic drug substances must be strictly prohibited and eliminated, because drugs harm people's health, give rise to corruption and crime, disrupt sustainable development and endanger national security.

Website: http://www.sda.gov.cn/WS01/CL0087/52131.html

Relief Aid Transparency

The new regulations on disaster relief seek to further standardize relief work given that some areas have suffered severe losses due to being unprepared for natural disasters. The new rules, which became effective in September 2010, stipulate that all local governments must publicize the relief aid and donations they receive, as well as how the contributions will be used.

The regulations require that relief aid and materials should be strictly used for the evacuation and relocation of disaster victims, the provision of daily necessities, medical treatment, the reconstruction of damaged infrastructure, and compensation to victims' families.

For cities and counties frequently struck by natural disasters, local governments should formulate emergency plans for coping in the event of a calamity, according to the regulations. The regulations were issued following China's increasing number of disasters in recent years.

Website: http://www.gov.cn/flfg/2010-07/14/content_1661409.htm