MOFCOM strengthening the supervision of FIE filing and opening
the door to joint enforcement
On December 13, 2016 the Chinese Ministry of Commerce
("MOFCOM") issued a Notice on
Efficiently Implementing the Supervision and Inspection of
FIEs' Establishment and Alternation Filing, which includes
supervision and inspection guidelines ("Circular
954") taking immediate effect on the same day. This
Circular 954 will have a significant impact on foreign operation in
China and below is more detail.
Key Message – to strengthen the post-filing
supervision
Following the recent developments in the PRC legislation on
amendment of the FIE laws and the new FIE filing process (which
replaces earlier approval practice), official procedures to handle
the establishment and corporate change of FIEs have been greatly
streamlined. Via this reform, FIEs and their foreign shareholders
have been generally given the liberty to define the effectiveness
of, for instance, an equity
