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China allows foreigners to trade A-shares next month

August 24 2018
China has approved regulation amendments, allowing qualified individual foreign investors to open securities accounts to trade A-shares next month.The updated regulation, which will take effect on Sept. 15, will allow foreign individuals working in the Chinese mainland to open A-share trading accounts, a move to further open up the securities market, according to the China Securities Regulatory Commission (CSRC).The move will expand the investor base, introduce more liquidity and improve the structure of the securities market, the CSRC said on its website.Eligible foreign investors must come from countries or regions that have established regulatory cooperation mechanisms with the CSRC, according to a separate statement issued by the China Securities Depository and Clearing Corporation (CSDC).Starting from Sept. 15, qualified foreigners can apply for A-share securities accounts by submitting application materials, including an application form for starting security accounts, a passport and its copy, and proof of employment issued by a domestic institution.The CSRC also expanded the equity incentive objects of foreigners working at companies listed on the A-share market from those working in the mainland to all foreign employees.In April 2013, the A-share market was opened to residents from Hong Kong, Macao, and Taiwan who work or live in the mainland. By the end of July, 125,000 qualified residents from these regions have opened A-share securities accounts, according to data from the CSDC.Source:Xinhua

Foreign Investment Policy Interpretation was established in Beijing

July 20 2018
On July 13, the China Association of Enterprises with Foreign Investment held a foreign policy interpretation meeting, and invited Ye Wei, deputy director of the Foreign Investment Department of the Ministry of Commerce, to exchange views with the member companies of the association on the latest foreign investment policy. The meeting was chaired by Cao Hongwei, the executive vice president. More than 80 member companies and more than 120 people participated in the conference, covering agriculture, food, medicine, chemicals, paper, electrical, energy, automotive, chip, finance and other fields.According to the recently released "Special Management Measures for Foreign Investment Access in the Free Trade Zone (Negative List) (2018 Edition)", "Special Management Measures for Foreign Investment Access (Negative List) (2018 Edition)" and other foreign policy documents, Ye Wei systemed to interpretate the investment liberalization, investment facilitation, investment promotion, investment protection, optimization of regional open layout, promotion of transformation and upgrading of State-level Development Zones and other six aspects of policy measures, timely and profound assistance to foreign-funded enterprises to understand and grasp China's foreign investment policies.Ye Wei also introduced the situation of attracting foreign investment in the first half of this year. From January to June, there were 29,591 newly established Foreign-funded Enterprises nationwide, a year-on-year increase of 96.6%. The actual use of foreign capital was equivalent to US$68.32 billion, a year-on-year increase of 4.1%. In the Pilot Free Trade Zone, 4,281 Foreign-funded Enterprises were newly established, and the actual use of foreign capital was 57.84 billion yuan, a year-on-year increase of 32.6%, leading the growth of foreign investment in the country. The actual use of foreign capital in the manufacturing industry was 134.83 billion yuan, a year-on-year increase of 4.9%, accounting for 30.2%. The actual investment capital from the United States, Singapore, South Korea, the United Kingdom, and Macao increased by 29.1%, 19.7%, 43.8%, 82.5%, and 78.7%, respectively. ASEAN grew by 24.4% year-on-year, and the “Belt and Road” countries increased by 24.9%. The above shows that the business environment in China continues to improve and foreign investment remains optimistic about China's development prospects.Then there was an exchange of interactions. Foreign-funded Enterprises have expressed their welcome to China's new foreign investment policy and believe that China is still an ideal investment destination.

China unveils shortened negative list for foreign investment

June 29 2018
China on Thursday unveiled a shortened negative list for foreign investment, with the number of items down to 48 from 63 in the previous version.Jointly released by the National Development and Reform Commission (NDRC) and the Ministry of Commerce, the new negative list will become effective on July 28, 2018.The list, with the official name "Special Administrative Measures on Access to Foreign Investment (Negative List) (2018 Version)," will substitute a catalogue for guiding foreign investment revised in 2017.The new list widens market access for foreign investment in primary, secondary as well as tertiary sectors, detailing 22 opening-up measures in fields including finance, transportation, professional services, infrastructure, energy, resources, and agriculture.The number of items subject to special administrative measures on the new negative list was cut from 63 to 48, further reducing the scope of foreign investment approval, the NDRC said.The new list also detailed a timetable for opening-up in the automobile and finance sectors, the commission said.China marks the 40th anniversary of its reform and opening-up policy this year.Making public the new negative list is an important move to implement the central authorities' arrangement for the opening-up strategy, relax market access to a great extent, and push forward high-level opening up, the NDRC said."The new round of opening-up will provide new impetus for attracting more foreign investment, promoting market competition and raising innovation capability," the commission said.It will also push ahead high-quality development and deep-level reforms, make new ground in pursuing opening-up on all fronts, and give strong support to the development of economic globalization.

Measures on the Registration of Adoption of Children by Foreigners in the People’s Republic of China

December 08 2017
Article 1 These Measures are enacted in accordance with the Adoption Law of the People's Republic of China with a view to regularize the registration of foreign-related adoption.Article 2 Foreigners who attempt to adopt a child within the territory of the People's Republic of China (hereinafter referred to as foreigners attempting to adopt a child in China), shall be subject to a registration procedure according to these Measures.Where a couple, one of whom is a foreigner, attempting to adopt a child in China, shall also be subject to a registration procedure according to these Measures.Article 3 Foreigners attempting to adopt a child in China shall conform to relevant laws in relation to adoption both in China and in their home countries; problems arising from the disaccords between the laws of their home countries and those of the China shall be resolved through consultation by relevant departments of the governments of two countries.Article 4 Foreigners attempting to adopt a child in China shall deliver an adoption application, a report and a certificate concerning family situation to adoption organizations authorized by Chinese government (hereinafter referred to as Chinese adoption organizations) through governments of their home countries or adoption organizations authorized by governments of their home countries (hereinafter referred to as foreign adoption organizations).The adoption application, report and certificate concerning family situation mentioned in the preceding paragraph refer to following documents which shall be issued by competent agencies of the adopters’ home countries, authenticated by diplomatic departments of the adopters’ home countries or agencies authorized by such diplomatic departments, and authenticated by embassies or consulates of the People's Republic of China stationed in that country.(1) application for transnational adoption;(2) birth certificate;(3) certificate of marital status;(4) certificate of occupation, income and property;(5) certificate of health examination;(6) certificate certifying whether the adopter has ever been subjected to criminal punishment;(7) certificate certifying the approval of transnational adoption by competent agencies of the adopter’s home country;(8) report of family situation, including such contents as the adopter's status, eligibility and appropriateness of adoption, family background, medical history, motive for adoption and characteristics suited to child care.Foreigners who have lived in China working or studing for more than one year, attempting to adopt a child in China, shall submit the documents prescribed in the preceding paragraph except for the certificate of health examination, and shall also submit the certificates issued by the Chinese units to which they belong or relevent departments, which certify such matters as marital status, occupation, income or property condition and whether have ever been subjected to criminal punishment, as well as the certificate of health examination issued by medical units at or above county level.Article 5 Such certifying papers as the permanent resident booklet, the resident identification card of the person placing out a child for adoption (where a social welfare organization placing out a child for adoption, the identification card of the person in charge of such organization) and a resident certificate of the adoptee shall be submitted to a civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government by the person placing out the child, and the following certifying papers shall also be submitted according to respective situations:(1) Where the parents (including those who have divorced) intend to place out their child for adoption, a certificate on their incapability of upbringing owing to unusual difficulties and a written consent agreeing to place out the child for adoption shall be submitted; thereinto, where one of the parents intends to place out a child for adoption while the other spouse has died or has been missing, a certificate certifying that the other spouse has died or has been missing and a written paper declaring that the parents of the deceased or missing spouse have given up the priority in rearing the child shall also been submitted.(2) Where a guardian intends to place out a child for adoption for the reason that the adoptee’s parents do not have full civil capacity, a certificate certifying that the adoptee's parents have no full civil capacity and may do serious harm to the adoptee, and a certificate certifying that the guardian owns the guardianship shall be submitted.(3) Where a guardian intends to place out a child for adoption for the reason that both of the adoptee’s parents had died, certificates certifying that the adoptee's parents have died and the guardian assumes the obligations of guardianship virtually, as well as a written consent on the placement for adoption from the person who has obligations to support the adoptee shall be submitted.(4) Where a social welfare organization intends to place a child for adoption, certificates on the abandonment and discovery of the abandoned infant or child as well as the process of searching for parents or other guardians of the infant or child shall be submitted; where the adoptee is an orphan, a certificate certifying the death or judicial declaration of death of the orphan's parents and a written consent from other persons having obligations to support the adoptee shall be submitted.Where a disabled child is placed out for adoption, a certificate of disability of the child issued by a medical institution at or above the county level shall also be submitted.Article 6 The civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government shall examine the credentials and certifying papers submitted by the person placing out a child for adoption, and issue public notice to look for parents for the abandoned infant or child whose parents cannot be ascertained or found; where the adoptee and the person placing out a child for adoption are believed to meet the requirements provided in the Adoption Law, a list of their names shall be notified to the chinese adoption organizations, and the following credentials and certifying papers shall be conveyed simultaneously:(1) Copies of the permanent residence booklet and the resident identification card of the person placing out a child for adoption (where a social welfare organization placing out a child for adoption, the copy of the identification card of the person in charge of the organization).(2) Copies of certificates certifying that the adoptee is an abandoned infant or orphan, and the resident certificate, the report of growth conditions, the certificate of health examinations as well as photos of the adoptee.The public notice issued by the civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government for looking for the parents of the abandoned infant or child shall be published in a local newspaper at the province level. Where no parents or other guardians acknowledge the abandoned infant or child within 60 days after the publication of the public notice, it shall be regarded as abandoned infant or child whose parents can not be acertainedren or found.  Article 7 A suitable foreign adoptee, who is among the adoptees recommended by the civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government and meets the requirements provided in the Adoption Law, shall be selected by chinese adoption organizations after having examined the adoption application and relevant certificates submitted by a foreign adopter and by referring to the desire of the foreign adopter, and the information about the adoptee and the person placing out the child for adoption shall also be sent to the foreign adopter through foreign governments or foreign adoption organizations. Where the adoption is agreed to by the foreign adopter, a notice to come to China for adoption of the child shall be sent to him or her by chinese adoption organizations, and simultaneously, the relevant civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government shall be informed to send the person placing out the child for adoption a notice that a consent has already been given to the adoption of the adoptee.Article 8 Foreigners attempting to adopt a child in China shall come to China for undergoing registration procedures in person. Where a foreign couple adopt a child jointly, they shall both come to China for undergoing registration procedures. Where one of the spouses cannot come for some reasons, the other shall be entrusted in written form to undergo such procedures independently, and the letter of entrustment shall be notarized and authenticated by competent angencies of the country in which they reside.Article 9 Foreigners attempting to adopt a child in China shall enter into a written adoption agreement with the person placing out the child for adoption. The agreement shall be in three copies, one is kept by the adopter, one is kept by the person placing out the child for adoption, and the third one is kept by the adoption registration organ while undergoing adoption registration procedures.After the conclusion of the written agreement, the parties concerned shall both register the adoption with the civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government in which the adoptee's permanent registered residence lies.Article 10 When dealing with the registration for adoption, the parties concerned shall fill out a registration application in relation to an adoption of a child in China by a foreigner, submit the adoption agreement and provide relevant materials respectively.The adopter shall provide following materials:(1) the notice sent by chinese adoption organizations that they may come to China to adopt a child;(2) the adopter's identification certificates and photographs.The person placing out a child for adoption shall provide following materials:(1) the notice sent by civil affairs department of the people's government of a province, an autonomous region or a municipality directly under the Central People’s Government that a consent has already been given to the adoption of the adoptee;(2) the photographs, permanent residence booklet and resident identification card of the person placing out a child for adoption (where a social welfare organization placing out a child for adoption, the identification card of the person in charge of the organization).Article 11 After receiving the registration application in relation to an adoption of a child in China by a foreigner and relevant materials of the adopter, the adoptee and the person placing out the child for adoption, an examination shall be conducted within 7 days by the adoption registration organ. Where the requirements provided in Article 10 of these Measures are met, the adoption shall be registered, and an adoption registration certificate shall be issued. The adoptive relationship comes into existence as of the date of registration.The adoption registration organ shall inform chinese adoption organizations of the result of registration.Article 12 Where, after the adoption registration, a adoption notarization is demanded by both parties or one party involved in the adoptive relationship, the adoption shall be notarized by a notarial agency with the qualification of handling foreign-related notarization which lies in the locus where the adoption is registered.Article 13 Before the adoptee leaves China, the adopter shall, on the basis of the certificate of adoption registration, go through exit formalities for the adoptee with the public security organ in the locus where the adoption is registered.Article 14 Foreigners attempting to adopt a child in China shall pay for the registration to the registration organs. The standard of registration fee shall be implemented in accordance with relevant provisions provided by the State.Chinese adoption organizations are non-profit public welfare institutions that provide adoptive services to foreigners and may charge service fees.The standard of service fees shall be implemented in accordance with relevant provisions provided by the State.The State encourages foreign adopters and foreign adoption organizations to make donations to the social welfare organizations in China in order to bring up abandoned infants and children there. The social welfare organization receiving donations must use all the donations to improve nurturing conditions for abandoned infants and children and may not misuse the donations for other purposes, and shall inform the donors of the use of the donations. The social welfare institutions receiving donations shall also subject themselves to the supervision of relevant departments and make the use of the donations known to the public.Article 15 The activities of chinese adoption organizations shall be subject to the supervision of the Ministry of civil affairs of the State Council.Article 16 These Measures shall come into effect as of the date of promulgation. The Implementation Measures on the Adoption of Children by Foreigners in the People's Republic of China approved by the State Council on November 3, 1993 and promulgated by the Ministry of Justice and the Ministry of Civil Affairs on November 10, 1993, shall be repealed simultaneously.

Sichuan Provincial Regulations on the Protection of Rights and Interests of Enterprises and Non-Enterprise Entities Rela

December 08 2017
Article 1 These Regulations are formulated in accordance with the provisions of the Law of the People’s Republic of China on the Protection of the Rights and Interests of Returned Overseas Chinese and the Family Members of Overseas Chinese and relevant laws and rules, in light of the specific conditions of Sichuan Province, and with a view to encouraging returned overseas Chinese and the family members of overseas Chinese to set up enterprises and non-enterprise entities and protecting their lawful rights and interests.Article 2 Enterprises and non-enterprise entities related with returned overseas Chinese and the family members of overseas Chinese in these Regulations refer to economic entities in the form of wholly-owned enterprise, joint-venture or joint operation, and non-enterprise entities on their own earnings and expenditures, set up by returned overseas Chinese and the family members of overseas Chinese using foreign fund or private fund. Such enterprises and non-enterprise entities shall meet one of the following conditions:a) foreign fund accounting for over 20% (20% included) of the registered capital of the enterprises or establishments;b) private fund accounting for over 50% (50% included) of the registered capital of the enterprises or establishments; orc) the number of returned overseas Chinese and the family members of overseas Chinese in the enterprises or establishments accounting for over 20% (20% included) of the total number of people engaged in the enterprises or establishments.Article 3 Enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese shall be confirmed by the offices of overseas Chinese affairs of people’s governments above county level.Article 4 Enterprises and non-enterprise entities applying to be confirmed as set up by returned overseas Chinese and the family members of overseas Chinese shall submit the following documents and certifications to the confirming agencies:a) letter of application for confirming enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese;b) investors and employees’ Certificates of Overseas Chinese and Hong Kong and Macau Compatriots and their Family Members;c) copy of the business license or approval letter of the enterprises and non-enterprise entities involved; andd) capital verification documents.The confirming agencies shall make decisions of confirmation or denial within 15 days from the day of reception of the above documents and certifications. Confirmation certificates shall be issued to the enterprises and non-enterprise entities that are confirmed to be the ones set up by returned overseas Chinese and the family members of overseas Chinese. Written reply shall be given to the enterprises and non-enterprise entities that are denied to be the ones set up by returned overseas Chinese and the family members of overseas Chinese.Enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese shall submit the Confirmation Certificate to the original issuing agencies for examination on a regular basis. The issuing agencies shall rescind the Certificates of those enterprises and non-enterprise entities that fail to meet the conditions for being enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese. The issuing agencies shall disqualify those enterprises and non-enterprise entities that fail to submit the Certificate for examination. The issuing agencies shall notify relevant departments of such rescissions of the Certificate or disqualification.Article 5 People’s governments at various levels shall support and give physical or moral awards to returned overseas Chinese and the family members of overseas Chinese who Ping in foreign fund to set up public welfare establishments in Sichuan Province in accordance with relevant provisions. Their lawful rights and interests shall be protected by law.Article 6 Upon the approval by competent departments of construction administration of cities, municipalities and autonomous prefectures, urban construction support fee may be reduced for the land for production and office of enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese. Upon approval by the land administrations and taxation administrations above county level, land use tax and site use fee may be reduced or exempted for those enterprises and non-enterprise entities which are confirmed by relevant competent departments as export-oriented or technically-advanced, by reference to relevant provisions in the Regulations of Sichuan Province on Encouraging Foreign Investment.Article 7 Upon verification and approval by local taxation administrations above county level, local income tax may be reduced or exempted for enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese, by reference to relevant provisions for foreign-invested enterprises. Specific implementation measures are to be formulated by local taxation administrations of Sichuan Province.Article 8 Donations for public welfare or relief made by enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese equivalent to 3% of the annual taxable income shall be deducted when calculating income tax.Article 9 Materials for science and education purpose and for the disabled contributed by relatives and friends outside China of returned overseas Chinese and the family members of overseas Chinese shall enjoy preferential treatment of duty reduction or exemption in accordance with relevant provisions of the State. Nobody may change the use of the contributed materials without authorization, or damage the marks for contributed materials on purpose, or seize the contributed property.Article 10 Nationalization or expropriation does not apply to enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese. In the case of special circumstances, if social and public interest necessitates expropriation of such enterprises and non-enterprise entities, the expropriation shall be approved by the people’ government of Sichuan Province, and corresponding compensation shall be made to such enterprises and non-enterprise entities for the expropriated property upon evaluation by appraisal agencies.Article 11 In the case that national construction necessitates the removal of the production and business sites and buildings with property ownership of enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese, the removing unit shall acquire removal permits issued by competent departments of removal administration above county level, and sign agreements of compensation and resettlement with, make corresponding compensation and arrange resettlement to the enterprises and non-enterprise entities involved in accordance with relevant laws and rules and adhering to the principle of ensuring the sustained operation of such enterprises and non-enterprise entities.In the case of production suspension caused by the removal, the removing unit shall make compensation for the economic losses of the enterprises and non-enterprise entities to be removed and grant removal fees.Article 12 The invested or acquired property, or the profit from investment or other lawful rights and interests of enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese shall be protected by State laws. No organization or person may seize or jeopardize such property, profit or rights and interests, or interfere with the freedom of operation and management of such enterprises and non-enterprise entities. No organization or person may impose any unreasonable fees or fines on or force donation by such enterprises and non-enterprise entities, save from the items of fees and standards of fines provided by laws, rules and Sichuan Provincial Government.Article 13 Private-owned enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese, or the shares of enterprises and non-enterprise entities owned by returned overseas Chinese and the family members of overseas Chinese may be inherited or transferred in accordance with law. The transferee may undergo confirmation procedures upon transfer, provided that the provisions of Article 2 and Article 22 of these Regulations are complied.Article 14 The names of enterprises and non-enterprise entities that are not classified as enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese may not be headed with the words “Overseas Chinese”. If the heading “Overseas Chinese” of such enterprises has been registered with administrations of industry and commerce, the heading shall be altered, and such non-enterprise entities shall be sorted out by competent authorities and the names of such non-enterprise entities shall be altered, except as otherwise provided by the State .Article 15 The lawful rights and interests of industrial or regional associations formed by enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese in accordance with relevant provisions in the Regulations on Registration and Administration of Social Organizations shall be protected by law, provided that their activities are organized in accordance with laws, rules and their Articles of Association.Article 16 Enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese shall protect the lawful rights and interests of the employees, establish trade unions in accordance with the Law of Trade Unions of the People’s Republic of China and the Implementation Measures of Sichuan Province on the Law of Trade Unions of the People’s Republic of China, and produce necessary conditions for the operation of the trade unions.Article 17 Enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese shall carry out legal production and operation and may not jeopardize national interests and other social interests.Article 18 In the case of infringements on the lawful rights and interests of enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese or civil disputes involving such enterprises and non-enterprise entities, such enterprises and non-enterprise entities may institute complaints to relevant authorities in light of different circumstances and in accordance with the General Principles of the Civil Law of the People’s Republic of China, the Administrative Procedure Law of the People’s Republic of China, the Law of the People’s Republic of China on the Protection of the Rights and Interests of Returned Overseas Chinese and the Family Members of Overseas Chinese and other laws and rules. Upon reception of such complaints, the competent authorities shall deal with the complaints by the procedures and within the time limits provided by laws and rules.Article 19 Upon verification, the issuing agencies shall confiscate the certificates of enterprises or organizations that counterfeited or acquired by fraud Confirmation Certificates for enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese and have enjoyed preferential treatments, and relevant authorities shall expropriate the illegal proceeds of such enterprises or organizations. In the event that the operators commit the unfair competition acts listed by these Regulations, illegal proceeds can hardly be identified resulting from the operators’ failure to provide relevant materials truthfully, and no rectifications are made after instructions, the supervision and inspection agencies may impose a fine of more than 1,000 RMB and less than 200,000 RMB in light of the circumstances. If crimes are constituted, judicial agencies shall investigate into the criminal responsibility of the responsible persons in accordance with law.The certificate-issuing officials liable for negligence of duty or dereliction of duty shall be given administrative penalties. In the event that significant economic losses are caused and crimes are constituted, judicial agencies shall investigate into the criminal responsibility of the responsible persons in accordance with law.Article 20 Competent authorities shall give criticisms and instructions to organizations or directly-responsible persons in violation of these Regulations, order the cease of infringements or give administrative penalties in light of the circumstances and in accordance with relevant laws and rules. Compensation shall be made for economic losses caused. If crimes are constituted, judicial agencies shall investigate into the criminal responsibility of the responsible persons in accordance with law.Article 21 People’s governments at various levels and their functional departments shall make efforts with the administration of enterprises and non-enterprise entities set up by returned overseas Chinese and the family members of overseas Chinese and offer related service to such enterprises and non-enterprise entities.Article 22 These Regulations apply to enterprises and non-enterprise entities set up by Hong Kong and Macau compatriots and their family members or federations of returned overseas Chinese at various levels in Sichuan Province that meet the conditions in Article 2 of these Regulations.Enterprises and non-enterprise entities invested and set up in Sichuan Province by returned overseas Chinese and the family members of overseas Chinese of other provinces, autonomous regions and municipalities that meet the conditions in Article 2 of these Regulations shall enjoy the treatments provided in these Regulations.Article 23 Specific issues in the implementation of these Regulations are to be interpreted by the office of overseas Chinese affairs of the Sichuan Provincial Government.Article 24 These Regulations shall take effect as of August 1, 1996.

Circular of the Ministry of Commerce on Delegation of the Authority to Examine and Approve the Establishment of Investment Companies by Foreign Investors

December 07 2017
Competent commercial departments of provinces, autonomous regions, municipalities directly under the Central Government, separately planning cities, Harbin, Changchun, Shenyang, Jinan, Nanjing, Hangzhou, Guangzhou, Wuhan, Chengdu, Xi'an and Xinjiang Construction Corp.,For the purpose of fully carrying out the outlook on scientific development and the spirits of the 2 nd Plenary Session of the 17 th CPC Central Committee, further deepening the reform of administrative system and changing the functions of governments to improve works on examination and approval of foreign investment and promote investment facilities, the adjustment to the power to examine and approve the establishment of investment enterprises by foreign investors is herein notified as follows:Article 1 Items concerning the establishment and alteration of an investment company with registered capital of or less than USD100mn by foreign investors (exclusive of those with one-time increase of capital over USD100mn) shall be subject to the examination and approval of the competent commercial department of provinces, autonomous regions, municipalities directly under the Central Government, separately planning cities, Xinjiang Production & Construction Corp and sub-provincial cities (including Harbin, Changchun, Shenyang, Jinan, Nanjing, Hangzhou, Guangzhou, Wuhan, Chengdu and Xi'an) at the place where the investment company makes registration and no competent commercial department at provincial level may delegate the authority of examination and approval or entrust other departments.Article 2 Items concerning subsequent alteration of an investment company established upon approval of the MOFCOM (exclusive of those with one-time increase of capital over USD100mn or changes of investors) shall be subject to the examination and approval of the competent commercial department at provincial level.Article 3 When examining and approving any application of foreign investors, the competent commercial department at provincial level shall strictly comply with relevant provisions of the Provisions on Establishment of an Investment Company by Foreign Investors (Decree of the MOFCOM [2004] No.22) and the Supplementary Provisions on Establishment of an Investment Company by Foreign Investors (Decree of the MOFCOM [2006] No.3) on conditions for the qualifications of foreign investors, registered capital, capital contribution form, businesses and requirements on application documents, and take counsel with the tax bureaus, administrations for industry and commerce and administrations for foreign exchange at provincial level at the place where the company is located whether there is any practice of violation of provisions by the foreign investors and their investment companies in China. Those in violation of applicable provisions shall not be approved to establish an investment company.Article 4 A foreign investor (legal representative) shall issue a written commitment (format of which is attached below) that its/his application submitted complies with the requirements of relevant laws and regulations and relevant materials and the signature of the legal representative or his attorney are true, accurate, complete and valid.Article 5 The investment scope of any investment company is not allowed to involve any industry under restriction and prohibition of foreign investment or macro-regulation. If the investment scope involves any industry under the category where foreign investment is allowed by special provisions, the competent commercial department at provincial level shall obtain the consent of national competent department of the industry according to relevant procedures.Article 6 The investment projects of an investment company shall conform to relevant laws, regulations and industrial policies and specific investment projects shall be separately applied for approval according to relevant procedures of the state. The enterprise invested by an investment company or jointly invested with other investors, for example, an enterprise with the percentage of foreign exchange investment by the foreign party (an investment company and other overseas investors) no less than 25% of the registered capital of the enterprise, may enjoy the treatment for foreign investment enterprises.Article 7 Upon approving the application of foreign investors, the competent commercial department at provincial level shall fill the filing form of investment company information (including three forms for newly-established enterprise, alteration and enterprise invested with format attached below respectively) through the “Administration System for Examination and Approval of Foreign-Invested Enterprises” in a timely manner, and submit the printed filing form (with official stamp of local commercial department), approval documents (with format attached below) and approval certificates (copy) to the MOFCOM (Foreign Investment Department) in written form for filing.Article 8 Upon approval of the competent commercial department at provincial level, an investment company shall report the situations of its operation and invested enterprise through the “Network for Administration of Foreign-Invested Enterprise” ( http://fic.wzs.mofcom.gov.cn/ ) in a timely manner at the meantime and go through network access procedures when receiving the approval certificate. It is encouraged to join the Executive Committee of Foreign Investment Companies of China Association of Enterprises with Foreign Investment.

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