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Policies on Foreign Investment

2. Project Examinations and Approval

Procedure for Examining and Approving the Contracts and Regulations of Ordinary Foreign Funded Ventures

Whether the total investment of the project exceeds US$30 million

If not

Whether the project belongs to the encouraged and permitted categories, and does not need the overall balance from the state and provincial government

If yes

Examined and Approved by the prefecture-level governments and state-level development zones

If yes If not

Examined by the provincial department of foreign trade and economic cooperation

 　

Examined and approved by the provincial department of foreign trade and economic cooperation

Whether the project belongs to the encouraged category

If not

Examined and approved by Chinese Ministry of Commerce

If yes

Filed with Chinese Ministry of Commerce after being examined and approved by the provincial department of foreign trade and economic cooperation

Note: If there are exceptional stipulations on procedure and method of examining and approving certain foreign invested projects, they must be executed in accordance with related laws and regulations.

　

The Ratio of Registered Capital to Total Investment

Total Investment

The Ratio of Registered Capital to Total Investment

Less than US$3 million (Including US$3 million)

70%

US$3 million-US$10 million (Including US$10 million)

If less than US$4.2 million

50%

No less than US$2.1 million

US$10 million-US$30 million (Including US$30 million)

If less than US$12.5 million

40%

No less than US$5 million

Over US$30 million

If less than US$36 million

1/3

No less than US$12 million

If foreign invested enterprises can’t meet the aforesaid requirements under exceptional circumstance, they shall submit a report to the Ministry of Commerce and Chinese Administration of Industry and Commerce for approval.

If foreign invested enterprises plan to enlarge their investment, the ratio of the further contributed registered capital to the increased investment shall also be governed by the aforesaid stipulations.

　

　

　

 

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