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New China overseas investments rules
By Juwai, 26 May 2014
As of May 2014, Chinese companies will find it easier to invest in countries abroad, especially in the US.
This is thanks to the latest Outbound Investment Project Approval & Filing Regulation approved by China’s National Development and Reform Commission (NDRC).
This means Chinese projects abroad with investments less than $1 billion in non-restricted sectors no longer need NDRC approvals, and only have to register with the NDRC, who then issues a filing acceptance in 7 business days.1
However, large and massive land development projects fall under a restricted category, as do deals above $1 billion – requiring them to still obtain approval from the NDRC.
Overseas projects worth over $2 billion need approvals from China’s State Council, along with a recommendation from the NDRC.
China’s relaxation in overseas investment rules is in tandem with its “go global” investment strategy and reform agenda, promising to free up the market by simplifying administrative controls.
China’s global outbound foreign direct investment increased by 30% to nearly $100 billion in 2013 – of which $14 billion was invested in the US alone.2
Sources: 1. Reuters; 2. China Daily