ANNOUNCEMENT 19 Aug 2010In August 2010, the government of China announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
On 19 August 2010, the General Office of the Ministry of Commerce issues the Notice on Relevant Issues concerning the Examination, Approval and Administration of Projects of Foreign Investment in Internet and Vending Machine Sales (Shang Zi Zi '2010' No.272) for the purpose of simplifying the procedure and review of foreign investment.
The new rules allow the review of foreign investment in online sales as well as vending machine retailing at provincial level. Prior to the change, all foreign investment was reviewed at the national level by the Ministry of Commerce.
Production enterprises and commercial enterprises are allowed to conduct online sales without administrative review. However, the establishment of foreign-funded enterprises only for online sales shall be reviewed by provincial commerce departments. Foreign-funded enterprises using their own internet platform providing internet services to third parties shall apply to the Ministry of Industry and information technology for approval.
The establishment of foreign-funded enterprise which sells commodities by vending machines shall be approved by competent provincial commerce department. It also applies when foreign-funded enterprises add more vending machines.