The new rules posted on the Ministry of Commerce website reduce approval procedures for Chinese companies looking to invest overseas. Dow Jones reported the ministry will now accept applications online and will no longer review the feasibility of each proposal.

While large mining companies have been the trailblazers of foreign investment, the new rules look to also encourage smaller companies to adopt the trend.

According to Dow Jones total overseas direct investment by Chinese firms rose 5.5% year on year to US$2.85 billion in 2003. Foreign investment into China in 2003 was $53.5 billion.

The announcement follows hot on the heels of news this week Chinese company Yanzhou Coal Mining had bought failed Australian miner Gympie Gold’ s Southland coal operations in the Hunter Valley for US$23 million.

Media reports said Yanzhou would spend more than $100 million redeveloping the coking coal mine to around two million tonnes per annum capacity. Yanzhou are expected to appoint Australian contractors to operate the mine.