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Mongolia eyes new foreign investment law

Mongolia’s parliament is considering a new law that could dramatically curtail foreign investment across the country, restricting foreign ownership to 49 per cent or less in wide swathes of the economy.

Mongolia is rich in resources and its $8.5bn economy has been buoyed by foreign investment in the mining sector. However, a backlash against a big Chinese investment deal last month has made foreign investment a central issue in the forthcoming parliamentary elections in June.

The draft legislation, a copy of which was seen by the Financial Times on Wednesday, is the clearest sign yet that Mongolia is uncomfortable with the large foreign investments that have so far been a mainstay of economic growth.

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