The Chinese State Council also recently issued the Investment Project Catalogue Approved by the Central Government (2013) (the "Catalogue") in which the scope of so-called items - or categories of projects - which require state approval has been decreased, i.e. 49 items were cancelled, delegated to so-called lower approval levels or transferred. Under the newly revised Catalogue, the number of items that need to be approved by the central authorities has been decreased by about 60%.

The Catalogue contains 13 categories of investment projects such as rural irrigation, energy, transport, information industry, raw materials, mechanism manufacture, light industry, hi-technology, urban construction, social undertakings, finance, foreign investment and overseas investment.

Under the new Catalogue, with respect to foreign investment, government-encouraged investment items with a total investment value (increased capital inclusive) of more than USD300 million and which are controlled (including relative controlling) by a Chinese party as well as restricted investment items with a total investment value (increased capital inclusive) of more than USD50 million(real estate exclusive) are subject to prior approval by the investment departments of the Chinese State Council. With respect to overseas investments, items with a total amount of more than USD1 billion invested by a Chinese party and items involving so-called sensitive counties, regions and industries will also be subject to prior approval by the State Council´s investment department. Other items shall be subject to the filing administration. That means, for investments in such items, no approval will be needed, filing the relevant documents should be enough.

Dr Jia Ding, LL.M and
Antao Zhao, LL.M. (China Desk)