Abstract: Adopt approval and filing management for enterprises' overseas investment; enterprises' overseas investment must not threaten China's national interests and safety; overseas investments made by domestic enterprises and natural persons through overseas enterprises should be brought under the management framework. For non-sensitive ones in overseas investment projects that are entirely controlled by overseas enterprises controlled by investment subject, and the Chinese investment over 300 million U.S. dollars do not need to file a record.

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On Tuesday, China's National Development and Reform Commission officially released "The Administrative Measures on Enterprises Overseas Investment"

"The Administrative Measures on Enterprises Overseas Investment" proposes that approval and filing management of overseas investment should be carried out. Enterprises' overseas investment must not threaten China's national interests and safety and must not violate macro-economic control and industrial policies. The NDRC and relevant same level departments will establish coordination and supervision mechanism to supervise and inspect overseas investment through online monitoring, interviews and counsels, checks, verification and other means.

In accordance with the principle of essence rather than form, the new approach incorporates domestic enterprises and natural persons into the regulatory framework through their overseas investments carried out by overseas companies under their control.

It should be pointed out that the inclusion of a regulatory framework does not imply any incorporation into the scope of approval and filing.

For overseas investment projects carried out by overseas companies wholly controlled by overseas investment subject (without involving the investing assets,rights and interests of investment subject or providing financing and guarantee), the new measures adopt the management idea of 'different management before the event, coverage during and after the event'. For the non-sensitive projects among them, if the Chinese investment is more than 300 million U.S. dollars, the investment entity shall report the relevant information to the Development and Reform Commission without filing; and China investment lower than 300 million US dollars does not need to file or notice.

At the same time, the new measures proposed to improve the disciplinary measures and establish a record of illegal overseas investment. For malicious splintering, false declaration, obtain approval documents or filing notice through improper means, carry out the project without authorization，do not change according to the regulations, should report but without reporting, unfair competition, threaten or harm the country interests and national security, provide illegal financing and other illegal acts, the new measures will clear define disciplinary measures and punish them seriously. At the same time, the new measures proposes to establish a record of illegal investment in overseas and implement joint disciplinary measures.

The above new measures will come into force on March 1, 2018.

Talking about why this new policy should be made, when answering a journalist's question, the person in charge of the National Development and Reform Commission said that in recent years, with the increasing internationalization of domestic enterprises and the more diversified forms of overseas investment, some overseas investment activities have become detached from the current management border, there are potential risks in them. In accordance with the principle of essence over form, the new approach incorporates domestic enterprises and natural persons who control the overseas investments through overseas companies into the regulatory framework.

He also said that as a basic system of overseas investment management, the new measures have uniformly introduced eight reform measures in terms of the three areas of "delegating power, strengthening regulation and optimizing service" with the aim to strengthen the macro-guidance of overseas investment, optimize the comprehensive services for overseas investment and improve the overall overseas investment supervision, promote the sustained and healthy development of overseas investment and safeguard China's national interests and national security.

As for the next step, the official said that in order to implement the new measures, the NDRC has recently focused its efforts on the three tasks. The first is to issue new and clearly defined supporting documents, including the sensitive industry directory, relevant format of the text and its annex list, etc. The second is to build a network system proposed by new measures. Third, strengthen guide, train and supervise so as to enhance the overseas investment service level and regulatory capacity of the national system of development and reform to jointly implement the new measures and better promote the stable development of 'going global' enterprises.