Circular of the Ministry of Commerce on Seeking Public Comments on the Administrative Measures for Outbound Investment (Revised) (Draft for Comments)
Circular of the Ministry of Commerce on Seeking Public Comments on the Administrative Measures for Outbound Investment (Revised) (Draft for Comments)
Circular of the Ministry of Commerce on Seeking Public Comments on the Administrative Measures for Outbound Investment (Revised) (Draft for Comments)
April 16, 2014
In order to further promote and develop outbound investment and improve the level of outbound investment facilitation, the Ministry of Commerce has revised the Administrative Measures for Outbound Investment and hereby publicly solicits comments from the public. Feedback and comments may be provided through the following channels and ways:
1. logging onto the China Legal Information Website (website: http://www.chinalaw.gov.cn) and accessing to the "Comments Sought for the Drafts of Departmental Regulations" on the left of the home page thereof to make comments.
2. logging onto the website of the Ministry of Commerce (website: http://www.mofcom.gov.cn) and accessing to the "Seeking for Opinions" then clicking the "Comments Sought for the Administrative Measures for Outbound Investment (Revised) (Draft for Comments)" to make comments.
3. email: tfshzc@mofcom.gov.cn.
4. mailing address: Department of Treaty and Law of the Ministry of Commerce, No.2 Dong Chang'an Avenue, Beijing Municipality, Postal code: 100731.
The date for opinion feedbacks will end on May 15, 2014.
Administrative Measures for Outbound Investment (Revised) (Draft for Comments)
Chapter I General Provisions
Article 1 In order to further promote and develop outbound investment and improve the facilitation level of outbound investment, the Ministry of Commerce hereby enacts the Administrative Measures for Outbound Investment (hereinafter referred to as the "Measures") in accordance with the Administrative Licensing Law of the People's Republic of China, the Decision of the State Council on Establishing Administrative Licensing for Administrative Examination and Approval Items that Must Be Retained and the Investment Project Catalogue Approved by the Government (2013 Version).
Article 2 For the purpose of the Measures, "outbound investment" refers to the activities of possessing non-financial enterprises in the host country (region) of investment through establishing new one or merger, or acquiring the ownership, control power or operation and management right of the existing non-financial enterprises conducted by enterprises that are established in China according to the law (hereinafter referred to as the "enterprises"). The host country (region) of investment refers to the final destination of the outbound investment.
Article 3 An enterprise carrying out outbound investments shall be responsible for the technical and economic feasibility at their own discretion, and shall understand thoroughly and observe the relevant laws, regulations, rules and policies of China and foreign countries.
Article 4 The outbound investment carried out by an enterprise shall not:
1. harm the sovereignty, safety of China and public interest, or violate Chinese laws or regulations;
2. damage the relation between China and a relevant country (region);
3. violate the international treaty concluded with other countries by China; or
4. involve the products or technologies the export of which is forbidden by China.
Article 5 The Ministry of Commerce shall be responsible for the implementation of administration and supervision over outbound investment, the departments in charge of commerce of all provinces, autonomous regions, municipalities directly under the Central Government, cities listed in separate state planning and Xinjiang Production and Construction Corps (hereinafter referred to as the "provincial departments in charge of commerce") shall be responsible for the implementation of administration and supervision over outbound investment within their respective jurisdictions.
Chapter II Archive Filing and Verification
Article 6 Where the outbound investment carried by an enterprise involves sensitive countries (regions) and sensitive industries, it shall be reported to the Ministry of Commerce for verification; other kinds of outbound investments shall be reported to the Ministry of Commerce and the provincial departments in charge of commerce for archive filing.
Article 7 The Ministry of Commerce and the provincial departments in charge of commerce record and verify enterprises' outbound investments through "outbound investment management system" (hereinafter referred to as the "system"), and print and issue the Certificate of Outbound Investment for Enterprises (hereinafter referred to as the "Certificate", see the appendix for the format).
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