The National Development and Reform Commission (“NDRC”) issued the Administrative Measures for Enterprise Outbound Investment (“Regulation No. 11”) which will come into force on March 1st, 2018, to replace the Administrative Measures for the Verification and Record-filing on Outbound Investment Projects (“Regulation No. 9”). One of the most distinguished differences in comparison to Regulation No. 9 is that, in addition to “Verification” and “Record-filing”, Regulation No. 11 has added two methods to deregulate the pre-supervision on outbound investment projects, which are “Report” and “No need to verify, record-filing or report”. We hereby summarize the above-mentioned supervision methods as follows:
The projects which verification applies to shall be supervised by the National Development and Reform Commission (NDRC); these mainly include sensitive projects invested directly by investors (including domestic individuals), or indirectly through the overseas enterprises which control them. A project can be defined “sensitive” if realized in a certain area (sensitive Country or Region) or implemented in a specific sector (sensitive industry).
Non-sensitive projects directly invested by the enterprise under the administration of the Central Government, or non-sensitive projects directly invested by the local enterprise, with an amount of investment made by the Chinese investor equal to USD300 million or above, shall be record-filed by NDRC. Non-sensitive projects invested by local enterprise with an amount of investment made by the Chinese investor is less than USD300 million, instead, shall be record-filed by the Provincial Development and Reform Commission (PDRC).
A report describing the details of non-sensitive projects of a large-amount (investment made by Chinese investor is more than USD300 million), which is indirectly invested by an investor (including domestic individuals) through the overseas enterprise under its control, shall be submitted through the Network System before the implementation of the project, in order to give the NDRC the relevant information.
Non-sensitive projects with a Chinese investment lower than USD 300 million, indirectly invested by an investor (including domestic individuals) through the overseas enterprise under its control, will not be required to verify, record-filing or report.
In addition to the changes mentioned above, there are also many other adjustments in Regulation No. 11. If you are interested in getting more information regarding this topic, please write an email to info@dandreapartners.com.
Provisions of the New Company Law on the Dismissal and Resignation of Directors China’s new Company Law, which will come into effect on July 1, 2024, creates the following systems for the dismissal and resignation of directors: first, the shareholders’ meeting may resolve to dismiss a director, but if a director is dismissed before the
The new Company Law was amended and passed on December 29, 2023, and will come into effect on July 1, 2024. The new law shortens the deadline for subscribed capital contributions, allowing companies to adjust their registered capital according to their operational conditions. This article starts by focusing on the key provisions of the new
On March 22, 2024, the Cyberspace Administration of China officially announced the Regulations on Facilitating and Regulating Cross-border Data Flow (“Regulations”) and took effect upon the date of announcement. According to the previous regulatory requirements for data outbound transfer, there are three main methods for data outbound transfer: security assessment, standard contract, and protection certification.
