So is the idea that minority owners of Chinese joint ventures could be held liable for the actions of their partners, since Chinese law often limits foreignfirms to minority stakes, andforeign shareholders frequently complain of being kept in the dark by the locals.
Promisingly, theChinese bank regulator announced draft rules in May to allow domestic andforeign institutions to set up consumer-finance firms to offer personal loans for consumer-goods purchases.
To help reduce net foreign-currency inflows, the government announced plans earlier this month that would make it possible for the first time though still subject to quotas for firmsand ordinary Chinese to invest in foreign securities markets.
The real reason is probably to persuade foreignfirms to move manufacturing to China before non-Chinese mines are on stream and its market control ebbs.
In addition, foreign investors have large stakes in several of the large Chinese Internet firms, including Alibaba Group (Yahoo and Softbank together own a majority) and Tencent (South African media firm Naspers owns 35%).