China: New rules on foreign-funded investment firms
Description
On 8 December 2011 China introduced new rules on foreign-funded investment firms, including barring them from using loans obtained inside China to finance their expansion in China. Thus, foreign-funded investment companies may (with the approval of local foreign exchange bureau) directly use RMB profits, RMB obtained in China by way of early recovery of investment gains, liquidation, equity transfer and capital reduction for domestic investment, which increases the foreign exchange convenience for foreign-funded investment firms.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered:
Implemented: Yes
Date of inception: 8 Dec 2011
GTA Evaluation: Green
Source:
Notice on Further Improving Management Measures Concerning Foreign-invested Companies by Ministry of Commerce. Ministry of Commerce Policy Release No. 1078(2011), 8 December 2011.
http://english.mofcom.gov.cn/aarticle/policyrelease/domesticpolicy/20120...
Government Response:
- 391 reads
