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  • Writer's pictureJean Franco Fernández Clark

China Capital Control on Overseas investments 企业境外投资管理办法

Updated: Feb 3, 2020

China Capital Control on Overseas investments

The Chinese Government, through the 企业境外投资管理办法 regulated overseas investments made by Chinese companies, which are:

(1) to acquire the rights and interests of ownership and use of foreign land;

(2) acquiring rights and interests in natural resources exploration and exploitation concessions outside the country;

(3) to acquire the rights and interests of ownership of overseas infrastructure and the right of operation and management;

(4) to acquire the rights and interests of overseas enterprises or assets, as well as the right of operation and management;

(5) to build new or expand foreign fixed assets;

(6) establishing new overseas enterprises or increasing investment in existing overseas enterprises;

(7) newly established or invested in overseas equity investment funds;

(8) controlling overseas enterprises or assets by means of agreements, trusts, etc.

Approval Management

The scope of approval management is a sensitive project carried out by foreign enterprises directly or through its control. The approval organ is the National Development and Reform Commission

Investments that fall within the “Sensitive Category” are:

I- Projects involving sensitive countries and regions.

(1) countries and regions that have not established diplomatic relations with China;

(2) Countries and regions where wars and civil strife occur ;

(3) in accordance with the international treaties, agreements, etc., concluded or acceded to by China, the requirements shall be limited.

I- Projects involving sensitive industries.

(1) Development, production and maintenance of weapons and equipment;

(2) Development and utilization of transboundary water resources;

As well as:

(1) Real estate

(2) Hotel

(3) Studios

(4) the entertainment industry

(5) Sports clubs

(6) establishing equity investment funds or investment platforms without specific industrial projects abroad

III the media;

Record Management

The non-sensitive projects (those projects that do not involve sensitive countries and regions and do not involve sensitive industries) directly carried out by the investors, that is, the non-sensitive projects involving the direct investment of assets, rights and interests, or the provision of financing and security by the investors.

These measures do not include Chinese natural persons carrying business on their own behalf.

About the author: Jean Franco Fernández Clark. Corporate and International Tax Lawyer from Nicaragua, Central America. Speaks English, Spanish, French, Italian, Russian. 学习普通话

Disclaimer: the content in this articile is for information purposes only. Nothing in this post constitutes a legal, tax, financial advice.


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