Approval procedures loosened for establishment of foreign enterprises

The Ministry of Commerce (MOFCOM) has issued new rules that would grant the provincial commerce authorities power to approve establishment of foreign-invested commerce enterprises (FICEs).

Broad & Bright partner Lawrence Guo said that theCircular on Delegating Matters Concerning the Examination and Approval of Foreign-invested Commercial Enterprises 《关于下放外商投资商业企业审批事项的通知》indicates MOFCOM's decision to lower the barrier of approval procedures for FICEs. Approval authority was previously retained by MOFCOM, and any FICEs involved in distribution of industrial raw materials such as fuel oil, cotton, and iron ore were subject to approval from the Ministry.