Four major new changes -- reduced processes, limits of authority transferred to lower levels, simplified contents and enhanced efficiency -- have been embodied in the new methods of examination and approval of overseas investment projects, according to official with the National Development and Reform Commission (NDRC) on December 2.
"Interim Measures for the Administration of Examination and Approval of the Overseas Investment Projects", an important document associated with the nation's reform on investment system, was issued and put into practice on October 9, 2004.
This is embodied the system of the approval transformed into the system of examination and approval. Previously, project proposal and the feasibility study report were subject to examination but now only the application of the project need to be examined for approval.
Limits of authority transferred to lower levels
The original limit of investment volume for approval was US$one million by the Chinese side. Under the new measures, it has been lifted by 30 times to US$30 million for resource-developing projects. The limit for Chinese investors' using foreign exchanges has also been raised to US$10 million, ten times much as in the past. The authority to examine other projects has been handed over to local governments and some left to the enterprises themselves.
Different from the examination of project proposal and feasibility study, in the examination of project application, more emphasis has been put on the determination of the investor and the investment direction, and the examination of regularity. The contents on examining the product program and financial profits etc. for which the investor should make decision and take the responsibility, have been cut.
Have a clear-cut idea of the content of the application of the project, the administration in charge of the examination, the process, conditions and effect of the examination, as well as improve the practicality and transparency of the examination.
By People's Daily Online