- Banking and Finance Laws
- Capital Markets
- Corporate Governance
- Features & Analyses
- Foreign Direct Investment
- Projects Energy and Environment
- Real Estate
- Retail Trade and Distribution
MOFTEC's Swansong: Easing Restrictions on PRC Holding Companies
May 02, 2003 | BY
clpstaff &clp articlesForeign-invested holding companies in the PRC have had a chequered history. Among MOFTEC's last big pieces of legislation are rules that make some positive changes in this area.
Share:
By Peter Corne, Linklaters, Shanghai
After much speculation in recent months, the Ministry of Foreign Trade and Economic Cooperation (MOFTEC), in probably its last act of rule making prior to merger with the State Economic and Trade Commission (SETC), issued a decision amending regulations on foreign-invested PRC holding companies on March 7 2003. While toning down prior restrictions to an extent and introducing some new areas of activity, the Amending the «Establishment of Companies with an Investment Nature by Foreign Investors Tentative Provisions»and its Supplementary Provisions Decision (关于修改《外商投资举办投资性公司的暂行规定》及其补充规定的决定)1 (the Amendments), continues MOFTEC's step by step approach to holding company liberalization, despite recent circulation of a draft (Discussion Draft) that promised much more.