Q:
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What kinds of investment activities will be treated as overseas investment?
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A:
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According to the PRC Measures for the Administration of Overseas Investment of Enterprises, overseas investment means the investment activities where an enterprise in the territory of the PRC, directly or through an overseas enterprise controlled by it, acquires overseas any ownership, right of control, right of business management, or other relevant rights and interests, by contributing assets or rights and interests, providing financing or security, or any other means, which mainly includes without limitation the following circumstances:
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Acquiring the ownership of, the right to use, and other rights and interests in land overseas.
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Acquiring a concession to prospect or exploit and other rights and interests in overseas natural resources.
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Acquiring the ownership of, the right of business management of, and other rights and interests in overseas infrastructure.
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Acquiring the ownership of, the right of business management of, and other rights and interests in any overseas enterprise or asset.
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New construction, reconstruction, or expansion of overseas fixed assets.
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Forming a new overseas enterprise or increasing investment in an existing overseas enterprise.
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Forming a new or acquiring a non-controlling stake in an overseas equity investment fund.
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8.
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Controlling an overseas enterprise or asset by an agreement, a trust, or any other means.
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The term "control" as mentioned above means the direct or indirect holding of more than half of the voting rights of an enterprise or the capability of dominating the operation, finance, personnel, technology, and other major matters of the enterprise though not holding more than half of the voting rights.
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Q:
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Whether investment in Hong Kong, Macao and Taiwan will be treated as overseas investment?
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A:
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Investment in Hong Kong, Macao and Taiwan will be treated as overseas investment.
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Q:
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What procedures do Chinese enterprises need to go through in China when they conduct overseas investment?
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A:
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Chinese enterprises shall apply for approval from or record filing with the National Development and Reform Commission (NDRC), Ministry of Commerce (MOFCOM) or their local departments and apply for foreign exchange registration with the State Administration of Foreign Exchange (SAFE) of the PRC for their overseas investment projects in accordance with the PRC laws and regulations.
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Q:
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What kinds of overseas investment projects shall be subject to approval? What shall be subject to record filing?
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A:
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According to the administrative measures on oversea direct investment issued by the NDRC and MOFCOM of the PRC, if the overseas investment project is sensitive, the Chinese enterprise shall apply for approval from the NDRC and MOFCOM. If the project is not sensitive, then record-filing with the NDRC and MOFCOM will be applied.
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Q:
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What are sensitive projects for overseas investment?
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A:
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According to the Measures for the Administration of Overseas Investment of Enterprises issued by the NDRC of the PRC, sensitive projects include projects involving sensitive countries and regions and projects involving sensitive industries.
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