To further simplify the approval procedures for domestic Chinese enterprises to invest abroad, the National Development and Reform Commission (“NDRC”) began last year to initiate a streamlined outbound investment approval procedure in several pilot regions in accordance with the Interim Measures on the Administration of the Verification and Approval of Overseas Investment Projects, the Notice of the NDRC on Delegating the Power to Approve Overseas Investment Projects to Authorities at Lower Levels, and the Notice of the NDRC on Issues Concerning the Improvement of the Administration of Overseas Investment Projects. In turn, the local development and reform commissions in Beijing, Shanghai, Jiangsu Province, Zhejiang Province, Shandong Province, and Sichuan Province recently published rules that provide for streamlined outbound investment approval procedures in certain instances. For example, enterprises located in the pilot regions that are interested in investing in smaller-sized, offshore projects may file a new standard project application form in lieu of the formal project application report, which normally runs hundreds of pages. A smaller-sized offshore project refers to a resource development project with an investment by the Chinese party of less than USD 30 million and other types of projects with an investment by the Chinese party of less than USD 10 million.

(Source: Zhong Lun Law Firm)