China to lift ban on state-owned firms buying Bloomberg terminals, source says

China is about to lift a ban on its state-owned enterprises buying terminals from Bloomberg as a goodwill gesture to foreign investors and a signal that Beijing is committed to its opening-up policy, according to a source briefed on the matter.

The authorities hope that by ending the boycott imposed four years ago after the American news agency’s high-profile rift with Beijing, they can deflect growing criticism that China is turning its back on foreign investors. This will also serve as a message that China will stick to its reform direction as the country enters a sensitive year of power reshuffles.

In a similar manner to how it was imposed in 2012, the lifting of the ban comes unannounced and in a low-profile style. Beijing had already started to gradually relax the restriction over the past year, after repeated lobbying efforts by the New York-based company.

The relations warmed noticeably after company founder Michael Bloomberg’s visit to China in August 2015. He was given a high-profile reception by Vice-Premier Zhang Gaoli and published an op-ed piece in the People’s Daily. Sources said the former New York mayor signed a preliminary agreement with the Chinese during the trip to sell terminals to mainland SOEs – including the largest state-owned bank ICBC.