Currently, the overseas direct investment (ODI) conducted by Chinse enterprises shall be subject to the project approval or record filing management of the Ministry of Commerce (MOFCOM), National Development and Reform Commission (NDRC) of the PRC and their local departments in accordance the PRC laws and regulations, depending on the different situations of the ODI. What kinds of ODI projects shall be subject to approval? And what kinds of ODI projects shall be subject to record filing? Kaizen hereby makes a brief introduction as follows for your easy reference.

1. MOFCOM and its Local Departments
   
   

   (1)	Approval of the MOFCOM Overseas direct investment conducted by Chinese enterprises which involves any sensitive country or region or any sensitive industry shall be subject to the approval of the MOFCOM. Sensitive countries herein refer to countries without a diplomatic relationship with the PRC or subject to international sanctions. Sensitive industries herein refer to industries involving the export of products and technologies restricted by the PRC from export or involving the interests of at least one country (or region).
   (2)	Filing with the MOFCOM Overseas direct investment conducted by an enterprise managed by the Central Government of the PRC which is not involving any sensitive country or region or any sensitive industry shall be submitted to the MOFCOM for record filing through its group company or head office.
   (3)	Filing with the Provincial Department of MOFCOM Overseas direct investment conducted by a local enterprise which is not involving any sensitive country or region or any sensitive industry shall be submitted to the provincial department of MOFCOM for record filing.

   
   
2. NDRC and its Local Departments
   
   

   (1)(1)	Approval of the NDRC Sensitive overseas investment projects conducted by Chinese enterprises directly or through overseas enterprises controlled by them shall be subject to the approval of the NDRC regardless of the investment amount of the Chinses investors. Sensitive overseas investment projects herein refer to projects involving sensitive countries or regions or projects involving sensitive industries. Sensitive countries or regions herein refer to countries or regions without diplomatic relationship with the PRC; countries or regions in war or civil disturbance; countries or regions in which enterprises are restricted from investment under any international treaty or agreement concluded or acceded to by the PRC; or any other sensitive countries or regions. Sensitive industries herein include research, production or maintenance of weapons; exploitation or utilization of cross-border water resources; news media; real estate, hotel, or setting up offshore equity investment funds or investment platforms without specific underlying industrial projects.
   (2)	Filing with the NDRC Non-sensitive overseas investment projects directly conducted by Chinese enterprises, namely, non-sensitive projects involving investors' direct contribution of assets or rights and interests or provision of financing or security, and the investment amount of the Chinese investors is not less than USD300 million, shall be submitted to the NDRC for record filing. If the investor is an enterprise managed by the Central Government of the PRC (including the wholly owned subsidiary of a central enterprise), it shall apply for record filing with the NDRC through its group company or head office even if the investment amount of the Chinese investors is less than USD300 million . The investment amount of the Chinese investors means the aggregate of currency, securities, physical property, technology, intellectual property rights, equities, creditor's rights, and other assets, rights and interests invested in and financing and security provided for a project by an investor or investors directly and through overseas enterprises controlled by it or them.
   (3)	Filing with the Provincial Department of NDRC Non-sensitive overseas investment projects directly conducted by local enterprises, and the investment amount of the Chinese investors is less than USD300 million, shall be submitted to the provincial department of NDRC for record filing.

You may refer to our relating articles below for more information on ODI of Chinese enterprise: Guidelines on the Approval or Filing of ODI by Chinese Enterprises, Classification of Chinese ODI Projects and Reporting Obligations for Chinese ODI Investors.

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