China further Streamlines Administrative Procedures in relation to Establishment and Change of Foreign Investment Enterprises: Approval System changed into Record-Filing System
On 3 September 2016, China’s National People's Congress Standing Committee issued a decision (the “Decision”) in relation to the amendment of the approval system for establishment of foreign investment enterprises (the “FIEs”). According to the Decision, the approval system was replaced by a record-filing system for industries which are not in the negative list (list of national market access restrictions) (the “Negative List”). However, the Negative List was not defined at that time. Recently, following this Decision, a detailed implementation rule (the “Rule”) was issued by the Ministry of Commerce (the “MOFCOM”) on 8 October 2016. This Rule provides detailed measures on the filing procedures of establishment and change of FIEs. On the same day, the National Development and Reform Commission (the “NDRC”) and the MOFCOM jointly issued a notice (the “Notice”) to clarify the Negative List..... Read the full article in our Legal Alerts Newsletter of October 2016 (PDF).