The national development and Reform Commission (NDRC) issued Order No. 11, announcing the "measures for the administration of enterprises' overseas investment", which will be formally implemented on March 1, 2018, replacing the previous "measures for the administration of approval and filing of overseas investment projects" (NDRC Order No. 9).

 

The national development and Reform Commission pointed out that the purpose of the new regulations is to reform the management system, especially for the new problems in the development of overseas investment and the new demands of enterprises, such as how to reduce institutional transaction costs, how to provide more convenience for enterprises' overseas investment, how to further regulate enterprises' overseas investment, how to better serve enterprises' overseas investment, and so on.

 

The measures have made three reforms to facilitate enterprises' overseas investment

 

First, cancel the project information reporting system, further simplify the pre management link, so as to reduce the institutional transaction cost;

 

The second is to cancel the links of local preliminary examination and reporting, so that enterprises can handle affairs well and run errands less;

 

Third, the latest time requirement for investors to fulfill the approval and filing procedures should be relaxed, which is conducive to enterprises to arrange the transaction rhythm more calmly.

 

The measures have made three reforms in regulating overseas investment

 

The first is to make up for the short board of management, bring the overseas investment carried out by domestic enterprises and natural persons through overseas enterprises under their control into the management framework, and take precise management measures;

 

The second is to innovate the supervision tools, improve the collaborative supervision and the whole process supervision, and promote the construction of network system and the development of online business;

 

The third is to improve the disciplinary measures and establish the records of illegal behaviors of overseas investment.

 

It is pointed out in the measures that enterprises can consult the national development and Reform Commission on policies and information concerning overseas investment and reflect the situation. The national development and Reform Commission can give macro guidance to enterprises and formulate relevant industrial policies to promote the security protection system and capacity building of overseas interests and safeguard the legitimate rights and interests of Chinese enterprises.

 

It is also mentioned in the measures that when the main investor is a local enterprise, if the amount of Chinese investment reaches US $300 million, it needs to be reported to the national development and Reform Commission; when the amount of Chinese investment is less than US $300 million, the filing authority is the development and Reform Department of the provincial government where the enterprise is registered.

 

For projects jointly carried out by more than two investors, the party with larger investment amount shall apply for approval and filing after seeking the consent of other investors. If the investment amount of all parties is equal, one of them shall apply for approval and filing after reaching a consensus.

 

In recent years, a number of domestic enterprises have invested and built factories abroad, and implemented the globalization strategy one after another.

 

The 1.67 billion yuan Vietnam factory project of Guizhou tire was signed in the presence of President Xi. The 3.8 billion yuan US factory of triangle tire has been put on record in the national development and Reform Commission. Linglong tire's Thai factory has been hot in production and sales, and European factories seem to have a start. The capacity utilization rate of Sailun Jinyu's Vietnam factory has reached 73%, and it is still in the process of capital increase And many other enterprises have plans for overseas layout.

 

Overseas factories can not only make enterprises' products enter the overseas market faster, radiate the surrounding areas and improve their popularity, but also effectively avoid the risk of anti-dumping investigation caused by trade protection, so that enterprises can obtain real benefits.