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On 6 September 2014, China's Ministry of Commerce ("MOFCOM") promulgated the Administrative Measures for Outbound Investment (境外投资管理办法) (the "Measures"), which took effect on 6 October 2014. The Measures widen the door to outbound investment by Chinese enterprises and relax certain approval requirements accordingly.
Pursuant to the Measures, enterprises intending to invest in outbound companies involving sensitive countries, regions or industries are required to obtain the approvals from the MOFCOM or its local agency. Other than the aforesaid circumstances, outbound investors are simply required to file their outbound investment projects with the MOFCOM or its local agency. The abovementioned sensitive countries or regions include, but are not limited to, the countries that have not established diplomatic relationships with China and the countries under the United Nation's sanctions. The abovementioned sensitive industries refer to industries involving the import of products and technologies which restricted from import, and industries involving multinational interests.
In addition, the approval from the MOFCOM is no longer a precondition to the execution of transaction documents of the outbound investment, and the investors of the outbound investment are allowed to file the application with the MOFCOM or its local agency for such approval after entering into the transaction documents.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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Rajah & Tann Singapore LLP
Shanghai Representative Office
Unit 1905-1906, Shui On Plaza,
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Shanghai 200021 PRC
http://cn.rajahtann.com
Contacts: Chia Kim HuatPartnerD +65 62320464kim.huat.chia@rajahtann.comYang Lih ShyngPartnerD +86 21 6120 8818F +86 21 6120 8820lih.shyng.yang@rajahtann.comLinda QiaoHead, Shanghai OfficeD +86 21 6120 8818F +86 21 6120 8820linda.qiao@rajahtann.com| Rajah & Tann Asia is a network of legal practices based in Asia. |
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