CHINA: Relaxation of review requirements for China foreign investment

Wednesday May 28 2014

The National Development and Reform Commission (NDRC) has published the ‘Administrative Measures on Approval and Filings of Foreign Investment Projects’ to reform the administration of China foreign investment projects.

The new Measures will take effect on 17th June 2014 and the previous ‘Interim Administrative Measures on the Approval of Foreign Investment Projects’ from October 2004 will be repealed from this date.

The new Measures set out the circumstances where China foreign investment projects require approval of the National Development and Reform Commission, whether at a local or central level, as follows:

• NDRC’s approval at a central level will be required for a foreign investment project if it is classified as an ‘Encouraged’ sector under the China Foreign Investment Catalogue with a requirement of being controlled by Chinese parties and the total investment is no less than USD 300 million, or it falls under the ‘Restricted’ sector (other than in real estate industry) in the Foreign Investment Catalogue with a total investment of USD 50 million or above;
• NDRC’s at provincial level will be required for any foreign investment project that is in the ‘Restricted’ sector with a total investment of less than USD 50 million or in the real estate industry of the ‘Restricted’ sector;
• Local NDRC approval will be required for any foreign investment project is in the ‘Encouraged’ sector with a requirement of being controlled by Chinese parties where the total investment is less than USD 300 million;
• Foreign investment projects outside the above will be subject to the filing requirements with the NDRC unless otherwise provided;
• Foreign investment in the Chinese currency (RMB) will now be subject to the rules.

The new Measures are currently only available in Chinese.

Click on the above link for the Measures.