On 8 July 2008, the National Development and Reform Commission (NDRC) released a circular urging increased standardization and better management of foreign investment projects. The circular calls for strict implementation of a system for approval and categorisation of foreign investment projects and intensified inspections on the veracity of foreign investment projects while at the same time implementing standardised management of new construction projects and increasing supervision of approved projects.
The circular stresses that all foreign investment projects, which include sino-foreign joint projects, sino-foreign collaborative projects, wholly-foreign-owned projects, and projects of mergers and acquisitions of local enterprises by foreign investors, must be governed under the verification and approval system and calls for more robust investigations of the background and credit status of foreign investors.
In addition, the circular stipulates that tight restrictions should be imposed on high consumption projects and projects that cause severe environmental pollution.
For more information please visit http://www.sdpc.gov.cn/zcfb/zcfbtz/2008tongzhi/t20080718_226080.htm