Further Strengthening And Standardizing The Management Of Foreign Investment Projects

The provinces, autonomous regions, municipalities directly under the central government, cities under separate planning, sub provincial capitals, Xinjiang development and Reform Commission, economic and Trade Commission (ECA):

Since the reform of China's investment system in 2004, the approval system for foreign investment projects has been implemented, which has played a positive role in further improving the investment environment, improving the quality of utilizing foreign capital and strengthening macroeconomic regulation and control.

However, there are still some problems in some places that do not strictly enforce the relevant regulations of the state and mismanage foreign investment projects.

Some foreign investment projects have started construction without approval. Some have not built strictly in accordance with the approved contents. Some investors have taken advantage of the fluctuation of international capital market and the adjustment of China's exchange rate policy to take false joint ventures, falsely report total investment and set up shell companies, pfer funds in the name of foreign direct investment, and divert capital from foreign exchange to make use of them in order to gain illegitimate interests, which brings potential risks to China's healthy economic development and balance of payments.

In order to further standardize the management of foreign investment projects and prevent the abnormal flow of foreign exchange funds, the following matters are hereby notified as follows: according to the decision of the State Council on the reform of the investment system (No. 2004 [20] of the State Council) and the Interim Regulations on the approval of foreign investment projects of the national development and Reform Commission (Commission twenty-second decree) and other relevant laws, regulations and regulations,

I. strict implementation of the approval system for foreign investment projects.

Development and reform departments at all levels should approve foreign investment projects from the following aspects: safeguarding economic security, rationally developing and utilizing resources, protecting the ecological environment, optimizing the major layout, safeguarding public interests, preventing monopoly, investment access, and capital project management.

We must adhere to the principle of first approving foreign investment projects and setting up enterprises again, so as to prevent the establishment of shell companies.

All types of foreign investment projects, including Sino foreign joint ventures, Sino foreign cooperation, wholly foreign-owned projects, foreign mergers and acquisitions of domestic enterprises, foreign-funded enterprises (including foreign investment enterprises that are converted through overseas listing), capital increase projects and Reinvestment projects, shall be subject to the approval system.

Two, strengthen the examination of authenticity of foreign investment projects.

The development and reform departments at all levels should check the total investment of the project in accordance with the scale of the project and the contents of the major construction projects. If necessary, they can entrust qualified advisory bodies for assessment; pay attention to the flow of foreign capital, strictly manage the difference between the total investment and capital of the foreign investment projects, implement the financing plan, and implement the state's regulations on foreign debt management, and strengthen the examination of the background and creditworthiness of the overseas investors, and strictly examine the unclear background, XinDa's requirements or incomplete materials, so as to prevent the inflow of foreign exchange funds without real investment background.

Three, implement the classified management system of foreign investment projects.

In accordance with the guidance list of foreign investment industry, the total investment (including capital increase, the same below) of the encouraged category, permitted category and the total investment of more than 50 million dollars and above shall be approved by the national development and Reform Commission. The total investment of 100 million yuan below the United States encourages the category, the permitted category and the total investment of less than 50 million US dollars, which are approved by the local development and reform department. The restricted items are approved by the provincial development and reform department, and the approval authority for such projects shall not be delegated for any reason or in any way.

Four, standardize the management of new projects and strictly examine the conditions for approval of various projects.

Development and reform departments at all levels should strictly regulate the conditions for newly started foreign investment projects in accordance with the spirit of the notice of the general office of the State Council on strengthening and standardizing the management of new start-up projects (No. 2007 of the State Council No. 64).

The project unit shall submit the project application report to the development and reform department, involving planning and site selection, land pre-trial and EIA approval, and the relevant documents should be attached.

For documents handling matters, the procedures and powers prescribed by relevant competent departments shall be implemented.

It is necessary to strictly restrict projects that seriously pollute the environment and consume high energy consumption, high material consumption, and consume large resources. Projects that do not meet the requirements of planning and site selection, land pre-trial approval, EIA approval and energy conservation assessment, and those projects that do not meet the requirements approved by the national development and Reform Commission's interim management measures for foreign investment projects (the order No. twenty-second), shall not be approved by the departments of development and reform at all levels.

Development and reform departments at all levels should strengthen communication with land and resources, environmental protection, housing and urban and rural construction, business (foreign trade and economic cooperation), foreign exchange management, customs and taxation departments, etc., and work together to improve the linkage mechanism of foreign investment project management.

Five, strengthen supervision and inspection of approved projects.

While doing well in the statistics and information management of foreign funded projects, we urge the project construction units to carry out their work in accordance with the requirements of the project approval documents, and strengthen supervision and inspection.

For foreign investment projects not approved for approval, or projects that have obtained approval documents by improper means such as piecemeal and false materials, or not according to the requirements of the project approval documents, the funds pferred to the territory shall not be used for construction projects in time. They should be corrected in a timely manner, strictly violate the regulations, and the project approval documents can be revoked in accordance with the law and ordered to stop construction.

Items that have such problems may not enjoy preferential policies such as tax reduction and exemption of procurement equipment, and they will not support their applications for listing or issuing bonds.

The departments of reform and development should recognize each other, consciously safeguard the overall situation of the state's macroeconomic regulation and control, further deepen the reform of the investment system, and strengthen and standardize the management of foreign investment projects according to law.

At the same time, efforts should be made to improve work efficiency, continuously enhance service awareness and safeguard investors' legitimate rights and interests.

For projects that meet national industrial policies and related requirements, we should give guidance and support to them, take all kinds of procedures as soon as possible, help solve problems and difficulties encountered in the process of construction, guide foreign investment in industries and regions encouraged by the state, promote industrial structure optimization and upgrading, and improve the quality and level of foreign capital utilization.

All kinds of investors should strictly implement the relevant laws and regulations of the state, conscientiously fulfill the project approval procedures, and consciously accept supervision and management.

National Development and Reform Commission

July 8th, two, eight