Clifford Chance

State Council further simplifies the approval requirements for cross-border investments into and out of China

15 December 2014

The State Council has recently updated its List of Investment Projects subject to Government Approvals (2014 List), which became effective as from 18 November 2014. The 2014 List further delegates approval authority from central level agencies to their respective local counterparts that regulate foreign investment in China (FDI) and outbound investment of Chinese companies (ODI). Essentially, the threshold for FDI projects in both the encouraged and restricted categories of foreign investment that would trigger government approval has been raised. Likewise, even ODI with an aggregate investment of US$1 billion will not be subject to government approval unless it involves a sensitive industry or region.

This showcases the commitments made by China’s new leadership in streamlining the government approval procedures for, among others, FDI and ODI projects.

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