MOFCOM announces new rules on Chinese overseas investment
Source: www.chinamining.org Citation: Xinhua Date: September 9, 2014
The Chinese Ministry of Commerce (MOFCOM) has announced new measures which will make it easier for domestic companies to invest overseas.
Under the new rules, the ministry cedes its previous control over approval of investment projects. Only overseas investment projects in sensitive countries or regions as well as in sensitive industries will require approval from the MOFCOM.
Such sensitive countries or regions include countries that have not established diplomatic ties with China and countries that are under the UN sanctions.
Other overseas investment projects only need to register with the MOFCOM, according to the new measures posted on the ministry`s website Saturday.
Aimed at allowing more freedom in outbound investment, the measures take effect on October 6 this year.
Previously, any overseas investment project worth more than $100 million was required to be approved by the MOFCOM. Overseas investment in energy and mining, and projects between $10 million and $100 million were also required to seek approval from provincial commerce departments.
Overseas investment companies in industries covered by China`s export restriction policies or projects affecting more than one foreign country`s interests are still subject to MOFCOM`s approval.
Apart from the MOFCOM, the National Development and Reform Commission (NDRC), China`s top economic planner, has the power to approve or veto an overseas investment project.
According to the new measures released by the NDRC in April, Chinese companies planning to invest less than $1 billion overseas will only need to register with authorities instead of seeking approvals from the NDRC.
Any overseas investment project larger than $1 billion must be approved by the NDRC and investment above $2 billion must be approved by the State Council.
Apart from being one of the most popular destinations for foreign investment, China has also become the world`s third-largest investor during the first seven months of the year, investing $52.55 billion in non-financial companies in 149 countries or regions, according to the MOFCOM.
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