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China tightened its joint-venture investment rules.

January 16, 1986

The regulations were tightened to increase required equity and reduce the debt of both foreign and Chinese partners. Last year, the rules were loosened to attract foreign investment. Foreign analysts said the changes were unlikely to deter any major company interested in investing in China, but smaller partnerships might be affected. Under the new rules, a venture of $3 million to $10 million can only have debt equal to, but not above, the amount of equity invested.

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