The Ministry of Commerce ("MOFCOM") on June 17 released the Circular on Improving Foreign Investment Review Administration (the "Circular").

The Circular releases foreign-invested companies (including those from Taiwan, Hong Kong and Macao) from the restrictions and provisions on the initial proportion of investment, proportion of cash investment and payment period, and allows investors to determine by themselves the amount of subscribed capital, the method of investment and the subscription period by indicating them in the joint venture contracts and articles of association. The Circular also requires the removal of any minimum registered capital requirement except as otherwise provided in laws, administrative regulations and decisions of the State Council. In addition, the Circular raises requirements for foreign investment statistical work.