On 6 Sep 2014, the Ministry of Commerce published the amended Regulation of Oversea Investment(hereinafter referred as Regulation) with the effect from 6 Oct, 2014. In the Regulation, oversea investment is defined as a performance conducted by the enterprise legally established in RPC, which acquires an oversea non-financial enterprise or the ownership, power of control, power of operation and other interests of such enterprise by establishing a new entity, M&A or other methods.
It is confirmed in the Regulation that the Ministry of Commerce and the provincial department will exercise the system of filing and approval respectively based on the different situation of oversea investment. Particularly, where an oversea investment refers to sensitive country or areas and sensitive industry, the system of approval would be applied. Otherwise, the system of filing shall be adopted.
Compared with the previous version, the amended Regulation highlights five points:
1．protect the autonomy of an enterprise to exercise oversea investment;
2．further devolve the authority and apply the system of “Principally filing and supplementarily approval”;
3．shorten the period of administrative management and simplify the procedure;
4．authorize the provincial department to file cases, which is of convenience to the enterprise.
（This information is provided by Lawyer Kelly Xie from Guangdong KaiTong Law Firm in friendship. It is not any legal opinion or legal grounds addressed to any organization or individual. For inquiry, please contact Kelly via email at Kelly_xie@ktlf.com.cn or by phone on 13926185641.）