China relaxes rules on approval procedures for foreign investment

Published: 04.05.2021 Related countries:  China China

The elimination and streamlining of approval procedures for selected foreign investments and projects will attract new investors and help foreign companies.

The elimination and streamlining of approval procedures for selected foreign investments and projects will attract new investors and help foreign companies. A positive impact on the balance of foreign direct investment in China is expected, experts said. In a recently published guide from the National Commission for Development and Reform (NDRC), it stated that foreign investment projects up to $ 30 million will no longer have to use registration procedures for approval. At the same time, project approvals over $ 30 million and up to $ 300 million will be passed to provincial authorities, so central approval will not be required. This should significantly speed up the whole process. However, projects must be in sectors covered by the Chinese Foreign Investment Promotion Industry Catalog. This measure is in line with the Chinese government's current efforts to attract foreign investors, which, according to available figures, is proving to be very successful. Simpler conditions for approving new investment projects are also positive news for Czech companies considering investing in China.