Provincial Approvals of Foreign Investment Clarified

July 02, 2001 | BY

clpstaff &clp articles

New regulations governing record filing requirements and procedures have been issued by MOFTEC. This law aims to clarify record filing procedures and streamlines the record filing process

Share:

 

Key Points:

  • clarifies which foreign-invested enterprises are eligible to receive provincial-level approval for in excess the applicable US $30 million provincial approval limit.
  • creates an expedited filing requirement with MOFTEC that provincial authorities must follow when granting approvals investment in excess of US $30 million.
  • provides that MOFTEC must issue a Final Notice Certificate in all situations where provincial authorities grant approval for foreign investment in excess of US $30 million.


New regulations governing record filing requirements and procedures have been issued by MOFTEC. This law aims to clarify record filing procedures and streamlines the record filing process.

In 1999, the State Council of the PRC created an  important exception to the rule that foreign- invested enterprises (FIEs) have to apply to the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) for approval to invest more than US$30 million. The provincial equivalent offices of MOFTEC were given the power to grant these approvals for FIEs in the "encouraged category".  Not long after this exception was created, the Issues relevant to Record Filing with the Ministry of Foreign Trade and Economic Cooperation of Foreign Investment Enterprises in the Encouraged category that are Above the Examination and Approval Limit of Provincial Level Foreign Trade and Economic  Cooperation Authorities Supplementary Circular (Supplementary Circular) was issued to the provincial offices requiring them to file approvals granted for foreign investment in excess of US$30 million with MOFTEC.

Supplementary Circular