NDRC Streamlines Outbound Investment

On April 8, 2014, the National Development and Reform Commission ("NDRC") promulgated the Measures for the Administration of Approval and Filing of Outbound Investment Projects (the "New Measures"), and revoked the October 2004 Provisional Measures for the Administration of Examination and Approval of Outbound Investment Projects (the "Old Measures"). The New Measures come into effect on May 8, 2014, and signal a fresh streamlined approach that should simplify outbound investments.

Consistent with broader policy set by the State Council in late 2013,¹ the New Measures streamline the regulatory process and delegate approval authority for outbound investment. A new emphasis on filing, rather than substantive review and approval, should enhance efficiency and facilitate outbound investment generally. This in turn is likely to increase the competiveness of Chinese investors in the global market.