NDRC issues new rules on verification, approval and filing of foreign investment projects

By Jem Li and April Wang

On 17 May 2014, the National Development and Reform Commission (NDRC) of China issued the Administrative Measures for the Verification and Approval and Filing of Foreign Investment Projects, which will become effective from 17 June 2014.

Here, ‘foreign investment project’ means projects in China with investment by a foreign investor.

On 12 November 2013, the Central Committee of the Communist Party of China issued the Decision of the Central Committee of the Communist Party of China on Several Major Issues on Comprehensively Deepening Reforms, which requires the government to establish unified market entry rules for all market players. For the regulation of projects with investment from foreign investors, the reform decision encourages the model of ‘pre-entry national treatment plus negative list’, which means that unless investing into industries listed in the negative list, foreign investors making investment into all other industries shall be treated equally as domestic investors. This pre-entry national treatment of foreign investors is a major change of attitude towards foreign investment in China. Before the administrative measures, although foreign investment has been welcome by China since the late 1970s most foreign investment projects were subject to PRC government’s prior approval…

Click on the link below to read the rest of the Minter Ellison briefing. 

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