China makes it easier for domestic companies to invest overseas
The mainland has simplified rules to make it easier for domestic companies to invest overseas - in the latest move to slow the rise of its foreign currency reserves and help local firms climb up the global value chain.
The mainland has simplified rules to make it easier for domestic companies to invest overseas - in the latest move to slow the rise of its foreign currency reserves and help local firms climb up the global value chain.
Under revised rules published by the Ministry of Commerce, most domestic firms will no longer need government approval before their overseas investment, but they must register their investment with the authorities.
But companies investing in "sensitive countries and industries" - which include nations that have no diplomatic ties with China and those under United Nations sanctions - still need government approvals, according to the rules published by the ministry on its website.
The rules will take effect on October 6.
The ministry, which reviews outbound investment applications from companies owned by the central government, would make decisions within 20 working days, the rules added.
The approval time limit for provincial commerce departments, which review applications from local firms, would be 15 working days.
The latest step is in line with the central government's recent reforms to cut red tape to reduce the government's administrative powers, the ministry said in a statement.
Under the old rules, any foreign investment project worth more than US$100 million had to be approved by the trade ministry, according to Xinhua.
Overseas investment in the energy and mining sectors also needed to be signed off by the authorities.
With the revised rules, deals larger than US$1 billion must also be approved by the National Development and Reform Commission, Xinhua said last week.
Outbound direct investment by non-financial mainland firms hit US$90.2 billion last year, up 16.8 per cent from 2012. Meanwhile, the mainland attracted US$117.6 billion in foreign direct investment last year, up 5.3 per cent from 2012.
