Handing down authority for foreign investment
April 16, 2009 | BY
clpstaff &clp articlesTwo new sets of guidelines will further streamline the process for approval of foreign investments, but some additional restrictions have been added. By Jonathan Z Zhou, Jessica Xu and Kevin Troy, Fangda Partners.
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On March 5 and 6 2009, the Ministry of Commerce (Mofcom) issued two circulars which further delegate approval authority for foreign investment to provincial and quasi-provincial authorities. Taken together, the Circular on Further Improving the Examination and Approval of Foreign Investment (March 5 Notice) (关于进一步改进外商投资审批工作的通知) and the Circular on Delegating to Lower-level authorities the Authority to Examine and Approve the Investment in, and Establishment of, Companies with an Investment Nature by Foreign Investors (March 6 Notice) (关于下放外商投资举办投资性公司审批权限的通知) have the cumulative effect of significantly reducing the control of the central government on foreign investment.
Delegating FIE Approval Rights