On 11 February 2018, China’s National Development and Reform Commission (“NDRC”) published on its official website the List of Sensitive Sectors for Overseas Investment (2018 Version) [Source], which includes the following industrial sectors:

  • research, manufacture, production and maintenance of weaponry;
  • cross-border water resources development and utilization;
  • new media;
  • Industries for which overseas investment shall be restricted according to the Circular of the General Office of the State Council on Forwarding the Guidance Opinion of the National Development and Reform Commission, the Ministry of Commerce, the People’s Bank of China and the Ministry of Foreign Affairs on Further Guiding and Regulating Overseas Investment Direction (Guo Ban Fa [2017] No.74), i.e.:
    • real estate;
    • hotels;
    • cinemas;
    • entertainment industry;
    • sports clubs; and
    • establishment of overseas equity investment funds or investment platforms with no specific industrial projects.

Effective from 1 March 2018, overseas investments made by Chinese investors directly or through offshore enterprises under their control in sensitive sectors require approval of NDRC.

Please also refer to our previous newsletter on latest trends of China overseas direct investment regulations [Reference].