ANNOUNCED AS TEMPORARYNo
FDI: Entry and ownership rule
On the 30th of July 2017, the Ministry of Commerce of the PRC (MOFCOM) announced that entities transforming from from domestic to foreign-invested enterprises through M&A procedures would no longer have to undergo the approval procedure from the Competent Comission of Commerce (COFCOM), instead only requiring the undertaking of simplified filing procedures with them.
Restrictions still exist for firms which conduct business in sectors listed on the 'restricted' or 'negative' lists present in the 'Foreign Investment Catalogue' (see related state act).
This policy greatly simplified the process of M&A of Chinese domestic enterprises for a large proportion of foreign investors.
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