The Ministry of Commerce ("MOFCOM") has recently issued the Measures for Reporting of Information on Foreign Investment (Draft for Comment) (the "Draft for Comment") and the Announcement on Matters Concerning the Reporting of Information on Foreign Investment (Draft for Comment) to solicit public opinions by December 2, 2019.
According to the Draft for Comment, the reporting of information on foreign investment involves the initial reporting, reporting of changes, reporting of deregistration, and annual reporting. A foreign-invested enterprise shall submit the annual report for the preceding year through the National Enterprise Credit Information Publicity System, at any time between January 1 and June 30 of each year. In addition, the Draft for Comment expressly states that for information on the deregistration of foreign-invested enterprises, investment made in China by foreign-invested enterprises, etc. that is accessible under the inter-department information sharing mechanism, foreign investors or foreign-invested enterprises do not have to report it separately again. Moreover, the Draft for Comment stipulates that where a foreign investor or a foreign-invested enterprise fails to report the investment information as required under the foreign investment information reporting system, the competent commerce authority will give it a warning and take some other measures, including ordering it to make corrections or imposing a penalty.