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  • A series of combined policies that have accelerated since last year in Zimbabwe, a southern African country, have made foreign investment more and more tense.
    In March 24th, the economic and Commercial Counsellor Embassy in Zimbabwe in the China website specially warned: Tianjin localization minister Zhu Wo (Patrick Zhuwao) in March 23rd, said at a press conference in Zimbabwe in March 22nd, the cabinet has unanimously passed resolution, failed to meet the requirements of existing localization requirements of foreign-funded enterprises, the localization must be submitted before March 31st implementation plan. Otherwise, the relevant ministries will cancel its business license.
    In February 15th this year, China Embassy in Zimbabwe ambassador Huang Ping called on Zimbabwe local and economic empowerment Minister Zhu wo.
    This is a bad news for Chinese including enterprises, foreign-funded enterprises in tianjin.
    Zhu Waugh said on the 23 day to the media that the cabinet's practice is to ensure the implementation of the localization laws and regulations, while helping to improve the economic situation of the black people in Zimbabwe.
    He said firmly: "this decision will affect all industries. The decision is to tell you that you must obey the law when you are careful. If you don't obey the law, let the enterprise decide for itself. We'll make it to the business to decide that they have to decide whether they want to keep the law on their own... If I am a shareholder of a company, I will ask the management to see it now. I will ask the chairman, why don't we abide by the law now?
    According to the data of 2015, the Tianjin Chinese owned enterprises including Shandong taikai Electric Power Construction Engineering Co., Ltd. Chuan Tie international economic and technical cooperation projects and contract firms; China electronics technology group 22 Tianbo information technology company and Beijing City Telecom Group force telecommunications engineering contract firms, a gold mine in the field of non Ming Chang Mining Investment Co. the company in the field of agriculture; and tobacco companies, the mining sector Chak Jin manufacturing company, Huajin cement factory and Zimbabwe mining and smelting company joint venture.
    Other foreign enterprises in Tianjin include France's Lafarge cement factory, Anglo American Platinum Corporation Ltd, British American Tobacco Group, the platinum mining industry and foreign investment enterprises mainly from South Africa, Britain, Canada, India.
    In 2007, Zimbabwe promulgated the localization and economic empowerment act, requires all enterprises in Tianjin, Tianjin local shares of not less than 51%, foreigners and white owned enterprises must be 51% of the shares sold to the local government or black, new investment company must be a native reserve more than 51% of the shares to be allowed to operate. But after the bill was published, there was a strong opposition to the bill, and the bill was postponed again and again.
    Since the beginning of last year, Zimbabwe has begun to accelerate the policy of strengthening the localization of foreign investment.
    In June 2015, after the government announced that Tianjin will integrate all the diamond industry, global mining giant Rio Tinto that ended in business.
    In November 2015, the Zimbabwe Tax Bureau declared that it was opposed to the preferential tax policies of foreign funded enterprises. The Commissioner of Taxation Gershem Pasi said that preferential tax policies would only benefit the relevant foreign-funded enterprises, rather than benefit them.
    Released in December 24, 2015 by Tianjin finance minister Chinamasa in the government gazette on the "Zimbabwe localization and economic empowerment method implementation framework, procedures and guidelines", the purpose is in President Mugabe's "ten point plan" under the guidance of economic interests to protect the local people, mainly include the following contents:
    One is reiterated that Zimbabwe all enterprises local enterprises or local people must hold 51% of the shares of the policy, but for different industries differently, such as air, soil, mineral resources industry must be at least 51% of the shares sold to some companies and funds designated by the government, and the non resource sectors including manufacturing, financial services, tourism industry, construction industry, energy industry and other industries, have completed the requirements of localization, but given a grace period of 5 years, the energy industry for 20 years of grace period.
    What attracted more attention to foreign capital is that agriculture, transportation, retail and wholesale trade, hairdressing, hairdressing, employment agency, real estate agency, bakery and other industries will be banned from foreign investment unless approved by the cabinet.
    The two is to collect the economic authorization fee for all enterprises. The cost is not yet fixed.
    The three is that the existing foreign-funded enterprises, which have failed to meet the localization requirements, can continue to operate, but should pay local compliance costs. The fees collected will be used to reward enterprises that have met the requirements of localization.
    All four have not yet submitted localization project, enterprises should submit plans in March 31, 2016, received the Tianjin Investment Authority localization plan, will consult the relevant ministries and national economy localization and authorized by the Commission, and then make a decision.
    The five is that all government departments, legal institutions and companies are required to follow the procurement law when purchasing, and at least 50% of the goods and services are to be purchased from local enterprises.
    After the foreign capital enterprise "localization" policy, in mid February this year, Tianjin government has introduced the "joint venture", according to the law, the government departments of the newly established joint venture (Joint Venture, Unit, JVU) to evaluate the joint venture proposal submitted, whether consider the affordability in Tianjin Bureau when, whether can bring a better income, and the transfer of technology, management and capital to maximize the risk to another party.
    The Department will also monitor and evaluate joint venture projects through a Joint Venture Committee (JVC) committee composed of multiple government agencies. After the establishment of the above two departments, the original Zimbabwe Investment Bureau