Foreign investors have not yet been allowed to take the lion's share in China's steel and iron companies, according to a new policy released by the National Development and Reform Commission Wednesday.

China released its first state policy on the iron and steel sectors Wednesday, raising the industrial threshold for foreign investors into China's steel and iron industry.

According to the new policy, foreign steel companies must have full intellectual property rights on iron and steel products if they want to invest in China. Their output of common steel in the previous year must reach at least 10 million tons, or that of high-alloy steel must reach 1 million tons.

If the foreign investor is not in the iron and steel business, it must prove strong financial capability and high credibility by paperwork from banks and accounting firms.

Source: Xinhua