ANNOUNCEMENT 06 Mar 2009In March 2009, the government of China announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
Circular of the Ministry of Commerce on Delegation of the Authority to Examine and Approve the Establishment of Investment Companies by Foreign Investors
On 6 March 2009, the Ministry of Commerce issued the Circular on Delegation of the Authority to Examine and Approve the Establishment of Investment Companies by Foreign Investors (Shang Zi Han '2009' No.8) for the purpose of reforming the administrative system and adjusting the functions of governments tofacilitate foreign investment.
Previously, all establishment and modification of registrationmatters of foreign investment companies were subject to the review by theMinistry of Commerce.
According to the new Circular, establishment and modification of registration of foreign investment companies with registered capital of or less than USD100 million (except those with one-time increase of capital over USD100 million) shall be subject to the examination and approval of the competent commercial department at the place where the investment company registers. These may include provinces, autonomous regions, municipalities directly under the Central Government, separately planning cities, Xinjiang Production & Construction Corp and vice-provincial cities (including Harbin, Changchun, Shenyang, Jinan, Nanjing, Hangzhou, Guangzhou, Wuhan, Chengdu and Xi'an) .
Modifications of registration of investment companies approved by the Ministry of Commerce (except those with one-time increase of capital over USD 100 million, and modification of investors) shall be subject to the review of provincial commercial departments.