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Interim Measures on Administration of the Verification of Foreign Investment Projects

外商投资项目核准暂行管理办法

Interim Measures on Administration of the Verification of Foreign Investment Projects

Issued: October 9, 2004

Effective: October 9, 2004

Issuing Authority: The National Development and Reform Commission ("NDRC")

Main Contents: These measures address:

(i) Verification authorities and their power limits - The NDRC shall be responsible for the verification of encouraged and permitted projects with a total investment of over US$100 million and restricted projects with a total investment of over US$50 million, among which encouraged and permitted projects with a total investment of over US$500 million and restricted projects with a total investment of over US$100 million shall, after examination by the NDRC, be submitted to the State Council for verification. Local development and reform authorities shall be responsible for the verification of encouraged and permitted projects with a total investment of less than US$100 million and restricted projects with a total investment of less than US$50 million, among which restricted projects must be examined and verified by provincial development and reform authorities.

(ii) Time limit for NDRC verification;

(iii) Verification criteria; and

(iv) Issues concerning items to be included in project applications, verification of changes, and other related matters.

As an initiative to implement the Decision of the State Council concerning the Reform of the Investment System (issued on July 19, 2004), these measures first of all feature the change of government review from the level of approval (shenpi) to verification (hezhun) for foreign investment. Secondly, they simplify the procedures. Enterprises are liberated from the lengthy verification procedures of project proposals, feasibility study and project commencement reports, and are now only required to submit a project application for verification. Another strength of these measures is the introduction of verification criteria, employed in consideration of only the most basic elements such as macro-economic control and environmental protection.