China Outbound Investment Approval Process Refined

Originally Published 24^th June 2009

China's National Development and Reform Commission (NDRC) has issued new rules to enable it to exert greater control over strategic overseas investments by Chinese companies.

NDRC promulgated a circular entitled "Circular on Improving the Administration of Offshore Investment" (Circular) on 8 June 2009, imposing a new "preliminary review" process on significant Chinese outbound investments.

While the Chinese government has undertaken several steps in recent times to encourage and facilitate outbound investment by Chinese companies, the Circular signals a desire by the government's main approval body to take a more active role in approving strategic offshore investments.