Ministry of Commerce, Circular on Further Improving the Examination and Approval of Foreign Investment

Issued: March 5 2009

Main Contents: Where a foreign investor or a foreign-invested enterprise is to acquire a domestic enterprise, and the domestic enterprise is in the encouraged or permitted category and the transaction amount is less than or equal to US$100 million, or the domestic enterprise is in the restricted category and the transaction amount is less than or equal to US$50 million, such acquisition shall be subject to examination by the competent local commerce department in concert with relevant departments such as the industry and commerce department, tax department, foreign exchange department. If the domestic enterprise is a listed company, the consent of the China Securities Regulatory Commission shall be required. If the domestic enterprise is a state-owned enterprise or involves state-owned assets, matters shall be handled in accordance with relevant provisions and the consent of the state-owned asset department shall be obtained. If an anti-monopoly review is involved, matters shall be handled in accordance with relevant laws and regulations (Article 5).

Related Legislation: Provisions for the Acquisition of Domestic Enterprises by Foreign Investors, Aug 8 2006, CLP 2006 No.8 p.69; and Measures for the Administration of the Issuance of Approval Certificates for Foreign-invested Enterprises and Taiwan, Hong Kong, Macao and Overseas Chinese-invested Enterprises