China Laws and Regulations Update in May 2014

  1. National Development and Reform Commission of PRC Promulgates Foreign Investment Project Approval and Record Management Rules

The National Development and Reform Commission of the People’s Republic of China promulgated the Foreign Investment Project Approval and Record Management Rules on April 8th 2014.  The Rules have effect from May 1st, 2014.

The Rules were made to do away with provisions that mark distinctions between overseas investment in resources and investments in other areas, except for those in connection with sensitive countries, territories or sectors. According to the Rules, the National Development and Reform Commission is entitled to assess and approve the overseas investment projects where Chinese investors contribute no less than USD 1 billion, while those with contributions of less than USD 1 billion by Chinese investors shall be put on record, no matter whether the projects relate to resource development or not. Before the Rules became effective, the minimum amount of Chinese investors’ contribution to overseas investment projects for resource development that the National Development and Reform Commission had the right to assess and approve were USD 300 million and that to other overseas investment projects were USD 100 million.

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