China's Ministry of Commerce said on Tuesday that it would lift limits on the size of foreigners' initial investments, and abolish previous time and currency curbs. Legal and administrative regulations in such areas will also be scrapped. But the easing rules do not cover foreign investors venturing into the banking and financial sector.

The ministry did not say when the new rules take effect, but said parties to contracts drawn up before March 1 this year must comply with the agreed terms.