Cookies on our website

We use cookies on our website. To learn more about cookies, how we use them on our site and how to change your cookie settings please view our cookie policy.

Read more Close
Skip Ribbon Commands
Skip to main content
Sign In

Publications

An Update of China's Control over Outbound Investments

 

22 January 2018

On 26 December 2017, China’s National Development and Reform Commission (NDRC) released the Administration Measures for Outbound Investments of Enterprises (the New Rules), which will take effect on 1 March 2018 and replace the current NDRC Administration Measures for Approval and Filing of Outbound Investments (the Existing Regulations).

 

This legislation is another major step by the Chinese government to reframe its control over outbound investment (ODI). The implementation of the New Rules will simplify the approval and filing procedures for Chinese investors, and will also augment the regulatory framework and extend the NDRC’s regulatory authority to control ODI more closely.

The abolition of the “road-pass” regime (xiao lu tiao): Under the Existing Regulations, if the investment amount of an ODI reaches or exceeds USD300 million, the Chinese investor must obtain a confirmation letter from NDRC before entering into a binding agreement or submitting a binding offer. This requirement has been removed under the New Rules. This is likely to enhance the competitiveness of Chinese investors, particularly in where transactions are structured as competitive auctions.

The abolition of the State Council’s approval for certain investments: Under the Existing Regulations, the State Council’s approval is required if an ODI is to be made in certain countries or the ODI is in a sensitive industry and the investment amount reaches or exceeds USD2 billion. This requirement has also been removed under the New Rules. Since there is no time limit for the State Council to grant approval under the Existing Regulations, the removal of this requirement will result in an increase in deal certainty for transactions that would otherwise be subject to the approval of the State Council under the Existing Regulations.

 

To read the full publication, click here.

 

 

 

 

 

 

Read more >>

Publications search




Client alerts

Already signed up for Client alerts? Click here to access your portal

 

Related expertise

Corporate

Antitrust/Competition

 

 

Key people

Victor Ho
Victor Ho
Managing Partner, Beijing/Shanghai
China
Telephone icon+86 10 6535 4381
Send email
View officeView profile
Wayne Lee
Wayne Lee
Partner
China
Telephone icon+86 21 2036 7168
Send email
View officeView profile
Richard Qiang
Richard Qiang
Counsel
China
Telephone icon+86 10 6535 4306
Send email
View officeView profile
Benjamin Crawford
Benjamin Crawford
Counsel
China
Telephone icon+86 10 6535 4382
Send email
View officeView profile
Charles Pommiès
Charles Pommiès
Counsel
Belgium
Telephone icon+3227802936
Send email
View officeView profile

 

 

 

 



  • Add comment (optional)