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The Legislative Affairs Office of the State Council has Enacted the Administrative Regulations on Go

Date:2020-05-11 17:14:28

On July 23 the Legislative Affairs Office of the State Council promulgated the Administrative Regulations on Government Examination, Approval and Record-filing of Investment Projects (Draft for Comment)1  (“Draft”), whichwas drafted by the National Development and Reform Commission(“NDRC”). The Draft addresses problems related to the difficulties enterprises have in securing approvals regarding their investment, gives enterprises more autonomy regarding their investments, and lets the market play a larger role in the allocation of resources. It does so by proposing to update the government’s procedures for the examination, approval, and record-filing of enterprises’ investment projects. The draft is open for comments until August 23.

The draft applies to the following:

(1)    Fixed asset investment projects by all Chinese enterprises without government investment and construction;

(2)    Overseas investment projects carried out by various enterprises in China,including through foreign enterprises or institutions. Within this scope, the Draft proposes the following changes.

First, the Draft focuses on decentralization. Under the Draft, pre-approval should be streamlined and that the government’s examination, approval, and record-filing procedures should not interfere with enterprises’ autonomy of investment. Only those projects that relate to national and ecological security, the national plan regarding important industries, the development of strategic resources, and major issues of public interest, as regulated in the Catalogue of Investment Projects Subject to the Approval of the Government,2 would be subject to examination and approval procedures; other projects would only be subject to record-filing procedures. Projects submitted for record filing would be subject to some form of mandatory advance filing. The filing authority would be required to accept the filing unless either:

(1) The project is prohibited as per government policy regarding the industry;

Or (2) the project is subject to examination and approval procedures.

Second, the Draft would improve the efficiency of the approval process. the Draft details the necessary documents, application procedures, examination procedures, and effectiveness for both filing for approval and record-filing. Under the Draft, government approval and filing procedures are to be in accordance with the principle of efficiency, convenience, and transparency.

Third, the NDRC proposes to establish a unified system of codes for investment projects. A unique code, which will act as the project’s identifier, would be issued by an online platform. This code would compile all the approval information, regulatory information, and other important information throughout the construction cycle. The code will also be usable in the social credit system.
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