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China proposes to ease outbound investment rules


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China proposes to ease outbound investment rules

China's outbound investment regulator is proposing new rulesthat will speed up approvals for outbound deals and allow Chinese companies to competefor the same target, Reuters reported May 9.

The National Development and Reform Commission issued draft rulesthat will allow Chinese companies looking to carry out a deal of US$2 billion ormore in sectors or countries deemed sensitive to no longer need prior approval fromthe State Council or to give proof of financing.

Sensitive deals will still need the approval of the NDRC andthe Ministry of Commerce.

The NDRC also proposed a reduced role for its regional bureausin approving regular deals as a way to speed up the process for companies basedin the provinces. Another proposal will allow Chinese companies to equally bid foran overseas deal. Currently, the NDRC has discretionary power to give one Chinesecompany the exclusive right to bid for an overseas deal.

The draft rules are expected to come into effect after the consultationperiod closes May 13. The State Council, NDRC and the Ministry of Commerce did notrespond to Reuters' requests for comment.