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China's Ministry of Commerce Improves Foreign Investment Review Administration

On June 17, 2014, the Ministry of Commerce released the Circular of the Ministry of Commerce on Improving Foreign Investment Review Administration (the Circular) that simplifies foreign investment review and relaxes certain restrictions on foreign investment.

Key elements of the Circular include:

  • The cancellation of the limitations or requirements on the (i) amount of first capital contribution, (ii) amount of monetary capital contribution, and (iii) capital contribution timetable for foreign-invested companies (including Taiwan, Hong Kong and Macau invested companies). Instead, the investors may independently agree upon these terms and specify them in the joint venture (cooperation) contract and the articles of associations.

  • The cancellation of the minimum registered capital requirement (other than for certain special industries).

  • The requirement for foreign-invested companies to issue capital contribution certificates to investors in accordance with the Company Law, Implementing Regulations on Sino-foreign Equity Joint Ventures, and the Implementing Rules of the Law of People's Republic of China on Sino-foreign Cooperative Joint Ventures.

©2020 Greenberg Traurig, LLP. All rights reserved. National Law Review, Volume IV, Number 228

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About this Author

George Qi, Greenberg Traurig Law Firm, Shanghai, Corporate and Finance Law Attorney
Shareholder

George Qi is the Co-Managing Shareholder in the firm's Shanghai office. He practices primarily in China-related cross- border mergers and acquisitions, foreign direct investment and general corporate matters. He also has wide- ranging experience advising both U.S. and non-U.S. companies relating to internal investigations of FCPA or other regulatory violations.

Areas of Concentration

  • Corporate

  • Compliance

  • Foreign Corrupt Practices Act...

86021-6391-6633
Dawn (Dan) Zhang, Greenberg Traurig Law Firm, Shanghai, Corporate Law Attorney
Shareholder

Dawn (Dan) Zhang is Co-Managing Shareholder of the Shanghai Office and has broad experience advising clients on China-related cross-border mergers and acquisitions, restructuring, joint ventures, funds, and general corporate matters. Before joining Greenberg Traurig, Dawn practiced in other international law firms for many years and served as the PRC legal counsel for a multinational corporation, where she handled a wide variety of corporate matters for public and emerging growth companies. Dawn passed the national PRC judicial qualification examination in 1998 and is admitted to practice in New York.

Concentrations

  • Mergers and acquisitions

  • Funds

  • Foreign direct investment

  • Corporate governance and compliance

  • Life sciences

8621-6391-6633