On April 13, the NDRC released the revised draft of the Administrative Measures for the Verification and Approval and Record-filing of Outbound Investment Projects (the “Draft”), opening a period to gather public comments until May 13, 2016.
Proposed major revisions to the original version that took effect in May 2014:
- Outbound investments are no longer subject to verification and approval by the State Council (they used to be when investment was over USD two billion or when they involved sensitive countries, regions and industries).
- Overseas acquisition or bidding investment projects exceeding USD 300 million will no longer be subject to a confirmation letter from the NDRC. Instead, the NDRC will issue a letter of receipt on receiving the project information report.
- Local enterprises will be treated the same way as enterprises under central management, without having to go through review at provincial level.
- The document burden on the investors is relaxed, i.e., no letter of intent on financing issued by the bank is required.
The Draft indicates that the NDRC will simplify outbound investment procedures and help more domestic enterprises go global. However, there is still concern whether local enterprises will be treated the same way as those under central management.
Date of issue: April 13, 2016. Deadline for public comments: May 13, 2016