• Circular on Several Opinions on Further Improving the Work of Utilizing Foreign Investment (State Council Circular 128)
  • September 20, 2010
  • Law Firm: Troutman Sanders LLP - Atlanta Office
  • Based on the State Council Circular 9 regarding Several Opinions on Further Improving the Work of Utilizing Foreign Investment issued in April 2010, on Aug 18, 2010, the State Council's office issued a Work Distribution Schedule (Guo Ban Han [2010] No. 128, “State Council Circular 128”), specifying the distribution of legislation tasks that the relevant governmental authorities shall undertake.

    • Industry Upgrading and Foreign Investment:

    National Development and Reform Commission (“NDRC”), Ministry of Commerce (“MOFCOM”), Ministry of Land Resource (“MLR”), State Administration of Industry and Commerce (“SAIC”), State Administration of Foreign Exchange (“SAFE”) and Ministry of Science and Technology (“MOST”) will be responsible for issuing more detailed working guidelines on foreign investment in high-and-new technology industries, regional headquarters, R&D centers, procurement centers, finance management centers, settlement centers, and accounting centers in China.

    • Investment in Midwest:

    NDRC, MOFCOM, State Administration of Taxation (“SAT”), SAIC, and SAFE will be responsible for issuing more detailed working guidelines for the foreign investment in China's central and western regions in particular in preferential tax treatment.

    • Various Modes of Foreign Investment:

    The NDRC, MOFCOM, SAIC, SAFE and China Securities Regulatory Commission (“CSRC”) will be responsible for issuing more detailed working guidelines for foreign investment in domestic A-stock listed companies, venture capital and private equity firm, and supporting qualified foreign-invested companies to go listing or issue corporate bonds or medium-term bills in China.

    • More Efficient Approval and Registration Procedures:

    The NDRC and MOFCOM will be responsible for issuing more detailed working guidelines for simplifying approval and registration procedures.