Circular of the National Development and Reform Commission on Doing a Good Job in Delegating the Power to Approve Foreign-invested Projects

Fa Gai Wai Zi [2010] No.914

Development and reform commissions of provinces, autonomous region, municipalities directly under the Central Government, separately planning cities, sub-provincial cities and Xinjiang Production and Construction Corp,
In light of the Some Opinions of the State Council on Doing a Good Job in Utilization of Foreign Investment (Guo Fa [2010] No.9), the issues relevant to delegation of the power to approve foreign-invested projects are hereby promulgated as follows:

1. Delegation of the power to approve. The projects with the total investment (including increase of investment) less than USD300mn under the categories of encouragement and permission in the Catalogue for the Guidance of Foreign Investment Industries, which are originally subject to the approval of the National Development and Reform Commission, are subject to the approval of the development and reform commission at the provincial level, except for those that are subject to the approval of the relevant departments of the State Council as prescribed in the Catalogue of Investment Projects Authorized by the Government.

2. Strict administration of projects. After delegating power to approval, the issues concerning project application report and the contents, conditions and procedures of approval shall be still subject to the Interim Measures for Administration of Foreign-invested Projects (No.22 Decree of the National Development and Reform Commission). The power to approve the projects under the category of restriction in the Catalogue for the Guidance of Foreign Investment Industries is not delegated temporarily. If there are special provisions on project approval in state laws and regulations and the documents of the State Council, those provisions shall prevail.

3. Improvement of utilization of foreign capital. Development and reform commissions at various levels shall encourage foreign investments in high-end manufacturing, hi-tech industries, modern service industry and new energy and energy-saving and environmental protection industries, and promote foreign investment in application of new technologies, processes, materials and equipment, hence restructuring and upgrading traditional industries. The projects featuring by “high energy and resource consumption and serious pollution” and those at low level with overcapacity or repeated construction shall be strictly restricted.

4. Simplification of the procedures for approval of projects. Development and reform commissions at various levels shall, when regulating the approval of foreign-invested projects according to approval conditions, proactively simplify the procedures for approval, shorten the period for approval and increase the transparency of approval. The approved projects, in principle, shall be open to the public by different means.

5. Creation of a good investment environment. Development and reform commissions at various levels shall seize this opportunity of power delegation to guide and regulate sound development of development zones. Those commissions shall, according to the requirements on concentrated layout and use of land and industry cluster, promote foreign-invested projects to concentrate in development zones, provide more conveniences to investment, enhance efforts on publicizing and influencing public opinions on positive role of foreign investment in fostering structural upgrading of industries, and continue to improve investment environment.

6. Enhancing of the supervision and examination of projects. Development and reform commission at various levels together with the relevant departments shall strengthen analysis on situation and tendency of foreign investment, focus on major issues, timely help foreign investors to solve difficulties and report main issues to the National Development and Reform Commission in a timely manner.

Development and reform commissions at various levels shall, by taking into consideration of local reality, publicize and carry out the Some Opinions of the State Council on Doing a Good Job in Utilization of Foreign Investment (Guo Fa [2010] No.9). Those commissions shall adhere to the principle of proactive and effective utilization of foreign capital and enhance efforts on reform and innovation to create a more open and optimal investment environment and comprehensively improve the level of utilization of foreign capital.

National Development and Reform Commission
May 4, 2010
Editor (Compiler): Shanghai International lawyers