NDRC pushes for more power over investment approvals

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clpstaff &clp articles

Draft Measures from the NDRC have brought welcome clarity for investors, but it is unclear which foreign investment projects will now need approval from the Commission

The National Development and Reform Commission released the Measures for the Administration of the Check and Approval of Foreign-invested Projects (Draft for Comments) 国家发展改革委员会外商投资项目核准管理办法 (征求意见稿), on August 16.

The Commission promulgated the Administration of the Verification of Foreign-invested Projects Tentative Procedures (外商投资项目核准暂行管理办法) eight years ago. Under the draft Measures, reinvestment by foreign-invested enterprises (FIEs) and projects involving foreign invested partnerships are now subject to NDRC approval.

Additional projects

It is unclear, however, in what capacity the NDRC will approve the additional projects. For FIE reinvestment, the draft does not specify which projects need approval. Compared with the Ministry of Commerce (MOFCOM), only projects which fall under the prohibited category of the Foreign Investment Industrial Guidance Catalogue (外商投资产业指导目录) require approval.

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