National Development and Reform Commission, Circular on Properly Handling the Delegation of Approval Authority over Foreign-invested Projects to Lower-level Authorities

Issued: May 4 2010

Main contents: Projects in the encouraged and permitted categories with a total investment amount (including capital increase) of less than US$300 million in the Foreign Investment Industrial Guidance Catalogue (the Catalogue) that were originally checked and approved by the National Development and Reform Commission will now be checked and approved by the provincial development and reform commission unless the project is required to be verified and approved by the relevant departments of the State Council pursuant to the Catalogue of Investment Projects Subject to Government Check and Approval (Article 1).

After the delegation of the check and approval authority, the project application reports and, the check and approval contents, criteria and procedure shall still abide by the Tentative Measures for the Administration of the Check and Approval of Foreign-invested Projects. The check and approval authority for the projects under the restricted category specified in the Catalogue will not be delegated for the time being. Where there are special provisions in state laws or regulations or State Council documents on the check and approval of a project, such provisions shall prevail (Article 2).

Related legislation: State Council, Several Opinions on Further Improving the Work on the Use of Foreign Investment, Apr 6 2010, CLP 2010 No.4 p.43; Foreign Investment Industrial Guidance Catalogue (Revised in 2004),Nov 30 2004, CLP 2005 No.1 (CLP Website); Catalogue of Investment Projects Subject to Government Check and Approval; and Tentative Measures for the Administration of the Check and Approval of Foreign-invested Projects, Oct 9 2004, CLP 2004 No.9 p.5