Friday, 11 June 2010

What the recent FDI announcements mean and what needs to be done

Look below.

Scroll down to the State Council Opinions on Further Utilising Foreign Capital and the NDRC clarification posted just above it. The good news is that these documents herald further incremental liberalisation of the foreign investment environment in China. The not-so-good news is that they don't yet do much more. The proof of the pudding, as in much of Chinese business law and policy, is in the implementing regulations which may be dribbled out in the months to come.

Thursday, 10 June 2010

Further elaboration of the State Council's April "Opinions" on foreign investment

Circular of the National Development and Reform Commission on Doing a Good Job in Delegating the Power to Approve Foreign-invested Projects
Fa Gai Wai Zi [2010] No.914

Development and reform commissions of provinces, autonomous region, municipalities directly under the Central Government, separately planning cities, sub-provincial cities and Xinjiang Production and Construction Corp,
In light of the Some Opinions of the State Council on Doing a Good Job in Utilization of Foreign Investment (Guo Fa [2010] No.9), the issues relevant to delegation of the power to approve foreign-invested projects are hereby promulgated as follows:

China's policy towards foreign investment takes an incremental step forward

Several Opinions of the State Council on Further
Utilizing Foreign Capital

Guo Fa [2010] No. 9

People’s governments of provinces, autonomous areas and municipalities directly under the
central government, ministries and commissions and departments directly under the State Council:
Utilizing foreign capital is the important content in China’s basic state policy of opening up to
the outside world. China has positively been attracting foreign investment and promoted industrial
upgrading and technical progress since the opening up, with foreign-invested enterprises being the
important component of the national economy. At present, Chinese advantage over utilizing
foreign capital remains obvious. For the purpose of raising the quality and level of utilizing
foreign capital and better giving full play to utilizing foreign capital in boosting scientific
innovation, industrial upgrading and regional coordinated and balanced development, the
following opinions are hereby put forward: