A recent consultation paper issued by the National Development and Reform Commission (NDRC) seeks to further relax current restrictions on Chinese outbound investments.
Some of the key proposals include
- removing the need for State Council approval for projects that exceed US$2 billion in prescribed jurisdictions,
- down-scaling NDRC confirmation requirements to an acknowledgement letter in respect of large acquisitions or bidding projects that exceed US$300 million in value, and
- removing the need for supporting lender commitment letters when making applications to the NDRC.
The proposed simplification of China’s rules on outbound investments is welcome and will provide greater procedural clarity to our Chinese clients who continue to actively explore outbound investment transactions. The public consultation closed on 13 May 2016.