NDRC draft eases outbound regulatory approvals

June 28, 2016 | BY

Katherine Jo &clp articles

Proposed amendments to outbound filing rules further clear the path for Chinese companies investing abroad, signaling less regulatory interference and greater market competition

China has taken a major step to ease outbound investment controls, doing away with value-based requirements and scrapping the need for regulatory approval in most cases.

The Decision on Amending the «Measures for the Administration of the Check and Approval and Record Filing of Overseas Investment Projects» (Draft for Public Comments) (Draft), issued by the National Development and Reform Commission on April 13, 2016, leaves only those considered 'sensitive' to be formally signed off. All outbound investments are now subject to record filing only.

“The most critical change is the abolishment of thresholds for State Council approval,” said Ling Li, corporate partner at Allen & Overy in Beijing. “According to the Draft, the buck stops with the NDRC for all projects.”

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