Q:

Any pre-approval is required if a Chinese enterprise plans to make overseas direct investment (ODI)?

A:

According to the administrative measures on oversea direct investment issued by the National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) of the PRC, if the ODI project is sensitive, the Chinese enterprise shall apply for  approval from the NDRC and MOFCOM. If the project is not sensitive, then record-filing to the NDRC and MOFCOM will be applied.  

Q:

What kinds of projects are sensitive for overseas direct investment (ODI)?

A:

According to the administrative measures on overseas direct investment issued by the National Development and Reform Commission (NDRC) of the PRC, sensitive projects include projects involving sensitive countries and regions and projects involving sensitive industries.

Q:

Which countries and regions are sensitive?

A:

According to the administrative measures on overseas direct issued by the National Development and Reform Commission (NDRC) of the PRC, sensitive countries and regions include: (1) those countries and regions that have not established diplomatic ties with the PRC; (2) countries and regions where war an civil strife occur; (3) countries and regions restricted for investment in accordance with the international treaties and agreements concluded or acceded to by the PRC; (4) other sensitive countries and regions.

Q:

Which industries are sensitive?

A:

According to the administrative measures on overseas direct investment issued by the National Development and Reform Commission (NDRC) of the PRC, sensitive industries include: (1) development, production and maintenance of weapons and equipment; (2) development and utilization of cross-border water resources; (3) news media; (4) industries restricted in accordance with the laws and regulations of the PRC.

Q:

How to apply if there are two or more enterprises to carry out overseas direct investment (ODI) together?

A:

If there are two or more enterprises to carry out overseas direct investment together, the major shareholder shall file or apply for approval after seeking written consent from other investors. If their shareholding ratio are equal, then one party shall be authorized to handle the filing or application after negotiation.