More approvals to be done locally

Near the end of 2008, the Ministry of Commerce (Mofcom) issued two Circulars which allow lower-level authorities to approve certain investments made by foreign enterprises.

Unless the investments exceed US$100 million for encouraged projects, or US$50 million in “restricted” projects, foreign investors need not apply to Mofcom for approval – they can go directly to local authorities. This should speed up many approvals and make life considerably simpler.

The move to hand down power is part of a bigger strategy, driven by a State Council Notice issued in 2007 (Decision on Abolishing or Adjusting a Fourth Batch of Items Subject to Administrative Examination and Approval), and has generally been welcomed.