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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 the Circular on Delegating Matters Concerning the Examination and Approval of Foreign-invested Commercial Enterprises 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.
The new rules represent the State Council’s recent efforts to further reform and streamline the administrative approval and licensing systems in China, said Guo.
“This is a significant delegation of approval powers of Mofcom,” he said.
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