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Legal and Regulatory

New rules can hurt foreign retailers
By AMY CHEUNG
Published: July 16, 2006 12:00 AM
China is drafting new rules to regulate large-scale shopping outlets, which could impede the expansion plans of such large-scaled foreign retailers as Carrefour SA and Walmart, the Wall Street Journal reported.   Under the draft plan which is currently under review of the State Council, cities would be required to file detailed blueprints of their commercial plans, including plans for department store, bug supermarkets and other retail outlets in residential neigborhoods. “We are not going to restrict the development of foreign investors in China,” said Wang Yongping, secretary-general of the China Commercial Real Estate Union and a senior adviser to the Ministry of Commerce,. “Instead, we just want a more balanced and scientific commercial layout. Foreign companies can no longer get special advantages from the government”, cited the Wall Street Journal.   Some foreign retail executive privately express concern to the Wall Street Journal that, “The law is quite cleverly worded because it doesn't explicitly apply to foreign companies, but is based on size, which is where the foreign retailers specialize in. So this is hurting them.”
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