China eases approval process for foreign investment projects
26 May 2014
The National Development and Reform Commission (NDRC) has recently released new rules to simplify the approval process for foreign investments and delegate more approval powers to local authorities. The Administrative Measures for the Approval and Record Filing of Foreign Investment Projects to replace the interim measures issued in 2004 will go into effect on 17 June 2014.
Under the Measures, all-round approval of foreign investment projects will be superseded by a combination of limited approval and general record filing. All planned investment projects by foreign firms, excluding those "encouraged" and "restricted" categories required by the Catalogue for the Guidance of Foreign Investment Industries to have a Chinese controlling (or relatively controlling) stake, need only a simple process of filing for record. Projects listed among the first to 11th items of the 2013 version of the Catalogue of Projects to be Approved by the Government still need to obtain approval.
Under the Measures, national treatment will be granted to foreign investors with respect to market access on a trial basis. That is, apart from "encouraged" or "restricted" projects under the Catalogue for the Guidance of Foreign Investment Industries that are required to have a Chinese controlling (or relatively controlling) stake, all foreign investment projects will be treated the same as their domestic counterparts.
Foreign investment projects need filing for record shall go to the investment divisions of local authorities. Such downward delegation will result in local management of most foreign investment projects. The Measures further simplify the contents of and management of the procedures of foreign investment projects, highlighting the role of enterprises in resources allocation by leaving decisions such as the project’s market prospects, economic effects and product technology solutions to the enterprises. The new rules also aim to further facilitate foreign investment.
The full text of the Measures in Chinese is available on NDRC’s website at: http://www.sdpc.gov.cn/zcfb/zcfbl/201405/t20140520_612252.html
- Mainland China
- Mainland China