On February 11, 2018, the NDRC issued the Catalogue of Sensitive Industries for Overseas Investment (the Catalogue), and the Standard Forms Related to Administrative Measures for Overseas Investment by Enterprises (the Standard Forms), both of which will come into effect on March 1, 2018. The Catalogue clearly listed those industries that are defined as “sensitive”, to which overseas investment made shall be subject to the NDRC approval, and the Standard Forms set forth the detailed documentation requirements when making applications or filings with NDRC. We discussed in this article the highlights of the Catalogue and the Standard Form that need to be aware of by market players in the PRC overseas investment market.
On December 26, 2017, China’s National Development and Reform Commission (NDRC) issued Order No. 11 concerning the promulgation of Administrative Measures for Overseas Investment by Enterprises (the Administrative Measures). On February 11, 2018, NDRC further promulgated (i) the Catalogue of Sensitive Industries for Overseas Investment (2018 Edition – the Catalogue) as mandated under the Administrative Measures, and (ii) the Standard Forms Related to Administrative Measures for Overseas Investment by Enterprises (2018 Edition – the Standard Forms).
The Standard Forms, the Catalogue, and the Administrative Measures, all being effective on March 1, 2018, have replaced the Administrative Measures for Approval and Filing of Overseas Investment Projects issued in May 2014 by the NDRC (the 2014 Measures) as well as the standard forms and documents provided thereunder. By issuing the Administrative Measures, the Catalogue, and the Standard Forms, NDRC will closely monitor and scrutinize overseas investments made by Chinese enterprises.