NDRC Seeks Public Comments on the Administrative Measures for Outbound Investment of Enterprises

The Draft

The 2014 Measures

Article 61, where public institutions, social groups and other non-enterprise organizations make investments abroad, these Measures shall apply mutatis mutandis.

Article 62, Where natural persons within the territory of China directly make investments abroad or in Hong Kong, Macao and Taiwan regions, these Measures shall not apply.

Article 31, These Measures shall apply to outbound investment and equity participation or establishment of overseas equity investment funds by investment entities.

Detailed administrative measures for outbound investment projects carried out by natural persons and other organizations shall be formulated separately with reference to these Measures

Where investors make investments abroad through enterprises that are located in Hong Kong, Macao and Taiwan regions and under their control, there Measures shall apply mutatis mutandis.

Detailed administrative measures for investment projects implemented by investment entities in Taiwan shall be formulated separately with reference to these Measures.

1. The acquisition of the ownership of, right to use or other equities of land abroad;

2. The acquisition of the exclusive right or other equities to prospect and exploit overseas natural resources;

3. The acquisition of the ownership, business management right or other equities of overseas infrastructure;

4. The acquisition of the ownership, business management right or other equities of overseas enterprises or assets;

5. The new establishment, renovation or expansion of overseas fixed assets;

6. The incorporation of a new enterprise or the additional investment in an existing enterprise;

7. The new establishment of or participation in overseas equity investment funds; and

8. The control of overseas enterprises or assets by means of an agreement, trust or otherwise

“sensitive countries and regions”

1. Any countries and regions that have not yet formed diplomatic relations with China;

2. Any countries and regions where there are wars or civil disorder;

3. Any countries and regions in which investment made by enterprises shall be limited under international treaties and agreements signed or entered into by China; and

4. Any other sensitive countries and regions.

1. Research, development, manufacturing and repair of weaponry;

2. Exploitation and utilization of water resources across borders;

3. News media; and

4. Industries for which outbound investment made by enterprises shall be restricted according to the macro-control policies of the country.

The catalogue of sensitive industries shall be issued by the NDRC.

Article 42, [Notification of information about large-amount non-sensitive projects that are not subject to administration by approval or record-filing] Where an investor carries out a large-amount non-sensitive project through the overseas enterprise under its control, the investor shall, before the implementation of the project, submit a report describing the details about such large-amount non-sensitive project through the Online Platform, in order to inform the NDRC of relevant information.

Time point requirement

“Before the implementation thereof” as mentioned in the preceding paragraph means the time before the investor or the overseas enterprise under its control invests assets or equities (excluding upfront expenses of a project, for which approval or record-filing has been handled according to Article 17 herein) in the project or provides financing or a guarantee for such project.