This paper is a revision of a paper entitled 'Regulatory Regime of China Outbound Investment' originally published by The Foundation for Natural Resources and Energy Law in the manual of Special Institute on International Mining and Energy Law, Development, and Investment.
1. Introduction
In recent years, there has been remarkable growth in overseas investments by Chinese entities. These investments have been driven by China's "Dual Circulation" strategy and the Belt and Road Initiative (BRI). According to data from the Ministry of Commerce of the People's Republic of China ("MOFCOM") and the State Administration of Foreign Exchange ("SAFE"), from January 2024 to November 2024, China's total outbound direct investment ("ODI") reached RMB 1,052.74 billion, marking a year-on-year growth of 10.3 percent ( US$ 147.96 billion in dollar terms, up 9.2 percent). Chinese domestic investors made non-financial direct investments in 8,581 overseas entities across 151 countries and regions, totaling RMB 915.20 billion, up 12.4 percent ( US$ 128.63 billion in dollar terms, up 11.2 percent).1 Non-financial direct investments in BRI-participating countries amounted to RMB 214.66 billion, reflecting a 6.2 percent year-on-year increase ( US$ 30.17 billion in dollar terms, up 5.1 percent). 2
The "Dual Circulation" strategy emphasizes both domestic and international economic cycles and has propelled Chinese companies to expand their global footprint. The BRI continues to serve as a cornerstone for China's overseas investments, particularly in the infrastructure, energy, and manufacturing sectors. These initiatives have facilitated economic cooperation with participating countries and reinforced China's position as a key player in global investment.
This paper explores the regulatory requirements governing Chinese entities' overseas investments. Understanding these regulations is crucial for Chinese entities to ensure compliance, as well as for those foreign partners engaging with them. This paper provides a guide for navigating the complex landscape of overseas investments by analyzing regulatory frameworks, the key regulatory bodies, and the approval/filing procedures.
2. Investments subject to the ODI Regime
2.1Geographical Scope
China's ODI regime governs all investments made by non-individual investors, such as companies, from the Chinese mainland to other destinations. This includes investments in foreign countries, as well as in the Special Administrative Regions of Hong Kong and, Macau and Taiwan. China has different jurisdictions so the term "inbound/domestic" refers solely to mainland China, while "outbound/overseas" includes foreign countries, Hong Kong, Macau and Taiwan. For the purpose of this paper, "China" or "PRC" refers to the jurisdiction of mainland China, and excludes Hong Kong, Macau and Taiwan.
2.2Investors
The ODI regime applies to various legal entities within China, including industrial and commercial entities, State-authorized investment institutions and departments, and public institutions (collectively referred to as "Investors"). When domestic Investors use overseas vehicles to invest abroad, although these vehicles are generally not directly subject to the ODI regime, domestic Investors must still comply with domestic policies regarding investment projects and fulfil the necessary approval, filing, and registration procedures. Overseas direct investments by individuals from China are generally not subject to the ODI regime3, except for those made by overseas entities under their control4. These individual investments are subject to the "Circular No. 37 registration" under a different set of SAFE rules5, which typically apply only to round-trip investments, where an overseas SPV established by a Chinese individual eventually invests in China.6
2.3Forms of Investment
Investments covered by the ODI regime are diverse and not limited to monetary contributions. They include currency contributions for establishing or expanding overseas operations, the acquisition or transfer of equity stakes in foreign entities (securities and equity), investments with physical assets like machinery, equipment, or real estate (tangible assets), contribution of patents, proprietary technology or other intellectual property rights (intangible assets), and the issuance of loans or other debt instruments to overseas subsidiaries or joint ventures (debt contributions).
2.4Investment Activity
The ODI regime governs a wide range of investment activities. Greenfield projects involve initial investments to establish new operations or infrastructure in foreign locations. Mergers and acquisitions ("M&A") refer to the acquisition of foreign entities or consolidating with existing ones. Joint ventures are collaborations with foreign entities to create jointly owned operations. Expansion projects involve capital infusions to expand existing overseas operations. Financial guarantees or loans extended to support overseas entities' operations are also within the scope of the ODI regime.
3.Key Regulatory Bodies
The National Development and Reform Commission ("NDRC") plays a vital role in regulating ODI. As the primary body responsible for formulating and implementing macro-economic policies, the NDRC is often referred to as the "small State Council". The NDRC oversees the approval or filing of ODI projects ("ODI Projects"), particularly sensitive projects or those exceeding specific monetary thresholds. The NDRC ensures alignment with China's broader ODI policy strategies and national development priorities.
MOFCOM is in charge of commerce related activities, including the administration and supervision of foreign direct investments (FDI) and ODI. It also oversees administrative approvals. MOFCOM ensures that overseas investments align with bilateral and multilateral agreements while facilitating compliance with domestic and international legal frameworks.
SAFE is the authority responsible for the administration of the foreign exchange in China. For ODI Projects, SAFE is tasked with managing foreign exchange registrations, via authorized banks qualified to undertake foreign exchange business. Its role includes supervising capital outflow, verifying funding legitimacy, and ensuring adherence to the foreign exchange regulations through the Capital Project Information System. SAFE Guidelines on Foreign Exchange Businesses under Capital Accounts (Edition 2024) emphasize the need for transparency in cross-border fund transfers and mitigates the risks of illegal capital fleeing.
Other regulatory bodies also play important roles. The State-Owned Assets Supervision and Administration Commission ("SASAC") supervises State-owned entities' overseas investments to safeguard State-owned assets. The China Securities Regulatory Commission ("CSRC") oversees listed companies' overseas investments, ensuring compliance with securities regulations. The China Banking and Insurance Regulatory Commission ("CBIRC") regulates banks and financial institutions' ODI activities, focusing on risk management in the financial sector. These bodies focus on sector-specific compliance and risk management, especially in industries like finance, technology and manufacturing.
4. Categories of China ODI
The PRC government adopts a "three-categories" system for ODI Projects, namely encouraged categories, restricted categories and prohibited categories. Understanding these categories is crucial as they determine the likelihood of an ODI Project passing regulatory screening.
As there are few difficulties in passing an ODI review for a supported and encouraged project, it is rather more important to understand those that are prohibited or restricted. Chinese Investors are strictly prohibited from participating in ODI Projects that endanger or may endanger the national interests or state security of China. This includes outbound investments:
(1)involving the export of core military-related technologies and products without State approval;
(2)using technologies, techniques, or products prohibited from export from China;
(3)investing in the gambling or sex industries;
(4)prohibited by international treaties concluded or participated in by China; and
(5)those that endanger or may endanger national interests or state security of China.7
While projects from restricted categories are technically eligible for approval upon application to the NDRC and MOFCOM, regulatory scrutiny in practice has a very low rate of approval. ODI Projects listed in the restricted categories are mainly those involving sensitive countries and regions, such as countries without diplomatic relationships with China, and those involving sensitive industries, such as real estate and entertainment. We elaborate on the restricted categories in the NDRC/MOFCOM approval topics in Section 6.2 and Section 7.2 below.
5. Regulatory Reviews required for ODI
Under China's foreign exchange controls, SAFE registration constitutes the final step in the ODI regulatory process. Chinese Investors are unable to remit capital overseas until completing this step, which often necessitates the inclusion of NDRC, MOFCOM, and SAFE approvals as closing conditions in the transaction documents (e.g., Share Purchase Agreements - SPA). Understanding this regulatory process is critical for foreign partners, to anticipate transaction timelines and mitigate delays.
The entire ODI approval/filing process typically requires a minimum of three months post-execution of the definitive transaction documents. It consists of four key steps:
Firstly, Investors need to go through the regulatory procedures of their relevant industry and the specific authorities according to their nature. For example, listed companies are regulated by the CSRC, state-owned entities are regulated by SASAC, and financial institutions are regulated by CBIRC.
Secondly, depending on the nature of the proposed ODI Project, it must pass the NDRC's approval or its filing procedures.
Thirdly, the ODI Project must undergo the necessary approval or filing procedures with MOFCOM.
Finally, after obtaining approval from the abovementioned authorities, the Investor must complete the ODI foreign exchange registration with SAFE through a qualified bank.
6. NDRC Approval/Filing
6.1Rules
Among the regulatory steps outlined above, the NDRC is widely regarded as the most critical. Market perception suggests that a successful NDRC review typically ensures a smooth progression through the subsequent regulatory steps. To check whether an ODI Project is subject to NDRC review, the following questions should be asked:
Firstly, does the ODI Project require funding from mainland China (including various forms of capital contribution as mentioned above)? If it does, the project is subject to NDRC approval or filing. In principle, ODI Projects involving sensitive countries, regions and sensitive industries ("Sensitive Project") require approval, while non-Sensitive Projects are subject to filing.
Secondly, if the answer to the first question is no, then will an overseas holding company controlled by a Chinese Investor provide funding or a guarantee? If yes, the ODI Project is still subject to NDRC approval if it is a Sensitive Project. However, for non-Sensitive Projects, the NDRC filing is applicable only if the investment amount is USD 300 million or more. To clarify, the NDRC regulations do not directly extend their jurisdiction over overseas holding companies because they are not incorporated in China and the approval/filing requirements are for Chinese Investors.
If the answers to both these questions are negative, meaning neither a Chinese Investor nor their overseas holding company will provide funding or a guarantee, the proposed ODI Project will not be subject to an NDRC review regardless of its sensitivity or investment detail.
6.2Sensitive Projects
The scope of a Sensitive Project under the NDRC system includes i) ODI Projects involving sensitive countries and regions, and ii) ODI Projects involving sensitive industries. For the NDRC, sensitive countries and regions refer to those8:
(1)that have not established a diplomatic relationship with China;
(2)experiencing wars or civil strife;
(3)where Chinese investments are restricted by international treaties or protocols concluded or participated in by China;
(4)other countries and regions that may be deemed sensitive.
The NDRC publishes a list of sensitive industries. In accordance with the most recent version of the list of sensitive industries published by the NDRC in 2018, sensitive industries restricting Chinese ODI include9:
(1)the research, production, maintenance and repair of weapons and equipment;
(2)the development and utilization of cross-border water resources;
(3)news media,
(4)real estate;
(5)hotels;
(6)cinemas;
(7)entertainment;
(8)sports clubs; and
(9)setting up equity investment funds or holding companies abroad without any actual business.
6.3Procedures
ODI Projects requiring NDRC approval or filing must initiate the application process upon the execution of the definitive transaction documents (e.g., a Share Purchase Agreement - SPA). The completion of an NDRC review is a prerequisite before proceeding for SAFE registration and capital remittance. The NDRC has published a series of template documents, forms and detailed guidelines for ODI Project applications10 and established an online application system11 where an Investor can submit an application. The required application documents include the standard application forms, the business license of the Investor, the shareholding structure, the audited financial statements, the investment-related resolutions, and other definitive transaction documents such as the investment agreement, and the SPA. There is also a requirement for documents that prove the authenticity and legitimacy of the fund source, statements on the authenticity of the ODI project, and other documents required by the NDRC.
After an ODI Project is approved or filed, an Investor must submit a change application with the NDRC in some circumstances, such as if there is a change in the number of investors, significant changes in the investment destination, major changes to the project content or scale, changes in the Chinese investment amount reaching or exceeding 20% of the original approved/filed amount or a change of 100 million US dollars or more. An NDRC approval/filing notice is valid for two years and is subject to extension if necessary, on application.
7. MOFCOM Approval/Filing
7.1Rules
Similar to the NDRC, the MOFCOM and its provincial-level counterparts administer an approval/filing system based on the different circumstances of ODI Projects. ODI Projects involving sensitive countries, regions and industries are subject to approval, while others are subject to filing.12
7.2Sensitive Projects
MOFCOM's criteria for defining Sensitive Projects is more straightforward than those of the NDRC. Sensitive countries and regions refer to those without diplomatic relations with the PRC and those sanctioned by the United Nations. Sensitive industries are those involving products and technologies restricted for export from China and those affecting the interests of multiple countries or regions. MOFCOM may announce additional lists of relevant countries and regions when necessary.13
7.3Procedures
MOFCOM established an online system14 for Investors to submit applications for approval/filing documents. Once the applied ODI Project has been approved/filed, the Investor will receive a "Certificate of Overseas Investments of Enterprises" with a Ministry of Commerce seal (the "ODI Certificate"). The application documents required include standardized application forms, the business license of the Investor, investment-related resolutions, audited financial statements, definitive transaction documents such as an investment agreement, SPA, a written explanation of the preliminary works (including due diligence, feasibility reports, the source of the investment fund and an investment environment analysis), a statement on the authenticity of the ODI Project, and other documents required by MOFCOM. This ODI Certificate is valid for two years and becomes void if the project is not carried out within the valid period.
8. SAFE
8.1Rules
In accordance with SAFE regulations, both initial expenses and investment amounts for ODI Projects must be registered with SAFE prior to remittance15.
Since 2016, for the purpose of enhancing supervision on significant capital outflows, SAFE can impose the following requirements:
(1)any single foreign exchange transaction for the purchase, payment, or domestic/foreign currency expenditure equivalent to or exceeding 5 million US dollars must be reported to SAFE through an information exchange platform;
(2)large-scale projects with investment amounts over 50 million US dollars are subject to prior interviews by SAFE.
8.2Cross-border Guarantees
An Investor may provide, or arrange a domestic bank to provide security for the performance of a loan repayment obligation by an offshore target company. Although the lack of registration for a cross-border guarantee will not invalidate the guarantee contract, SAFE registration for a cross-border guarantee enables the fulfillment of the guarantee obligations. If an Investor is asked to fulfill a guarantee obligation, SAFE registration allows the Investor to purchase and remit foreign exchange for the guarantee amount.
8.3Procedures
Since 2015, SAFE has delegated the authority for registering ODI Projects to banks qualified in foreign exchange business, who can now handle registrations on behalf of SAFE16. After a qualified bank has registered the investment amount (confirmed by MOFCOM) in the SAFE system, the Investor can obtain a registration certificate and purchase and remit out the foreign exchange within the limit of the registered amount. The required documents include the standardized application forms, the business license of the Investor, an NDRC approval/filing notice, ODI Certificate, investment-related resolutions, a written explanation of the investment fund/foreign exchange source, certificate for the remittance of initial expenses (if any), and other documents required by SAFE or a qualified bank.
9. Merger-control Filings
If an M&A or joint venture transaction of an ODI Project enables the Investor acquiring the control or decisive influence over the target company, it constitutes a concentration of business operators. Similar to rules in many jurisdictions, PRC anti-monopoly laws impose a declared requirement for the concentration of meetings under the following standards17:
(1)the worldwide turnover of all the business operators involved exceeds RMB 12 billion in the preceding fiscal year, and the turnover in China of at least two of the business operators exceeds RMB 800 million separately in the previous fiscal year; or
(2)the turnover in China of all the business operators exceeds RMB 4 billion in the preceding fiscal year, and the turnover in China of at least two of the business operators exceeds RMB 800 million separately in the prior fiscal year.
If the transaction reaches the above thresholds of the declaration, all the business operators must file the declaration of such concentration with the Anti-Monopoly Bureau. Although the law does not clearly stipulate the filing time, in practice business operators should file the declaration after signing the transaction documents and obtain clearance before closing the transaction.
10. Re-investment
If a Chinese Investor utilizes an overseas holding company controlled by it to invest in an ODI Project, the ODI Project remains subject to NDRC approval requirements, and to the NDRC filing requirement for non-Sensitive Projects amounting to USD 300 million or more.
For MOFCOM, where an overseas entity reinvests overseas, it must report to the relevant commerce authorities in charge after completing the overseas legal formalities.
No SAFE registration is required for re-investment as long as none of the funds come from China. However, if the re-investment uses funds from a domestic institution, it should be regarded as an ODI registration change rather than a re-investment.18
11. Special Rules for SOEs
11.1Definition
Stated-owned Entities ("SOEs") in China are subject to additional regulatory requirements imposed by the State-owned Assets Supervision and Administration Commission ("SASAC"). SASAC is an agency directly under government supervision to perform the duties of State-owned asset management.
China has different levels of government, and both central and local governments may establish their own SOEs. As a result, an SOE may be subject to the rules of SASAC under the State Council, i.e. the central government, or the rules of SASAC under the local government, depending on its ownership. As most Chinese ODI Projects are carried out by SOEs established by the central government through SASAC under the State Council, this paper focuses solely on the rules applicable to central SOEs.
11.2Rules
SOEs are generally restricted from making overseas investments in non-core businesses. Exceptions require prior SASAC review and must involve collaboration with other SOEs possessing the relevant core business expertise. "Core business" is defined as the primary operations of the SOE, based on its development strategies and plans and confirmed by SASAC.19
SASAC also implements a "Negative List" system governing ODI Projects made by SOEs, including a prohibited list and a specially supervised list. SOEs are prohibited from investing in projects on the prohibited list and must obtain SASAC approval for projects on the specially supervised list. Projects not on the Negative List can be decided by SOEs at their discretion, based on the development strategies and plans.20
The Negative List may have been updated by SASAC, but the most recent version publicly available was released in 2017, raising doubts about its current validity21. In accordance with the 2017 version of the Negative List, the only item on the special supervised list was an investment of USD 2 billion or more. The prohibited list includes ODI Projects:
(1)that fail to complete the necessary approval procedures;
(2)that do not align with the corporate development strategy and planning reviewed and approved by the SASAC;
(3)that do not follow the SOE's investment decision-making procedures and management systems;
(4)with an expected return rate lower than the 10-year government bond interest rate of the host country;
(5)with capital contributions below the requirements set by national regulations;
(6)with a single investment amount exceeding 50% of the net assets of the SOE's consolidated financial statements;
(7)without clearly defined financing, investment, management, exit methods, and responsible parties; and
(8)that raise the debt ratio under SASAC's debt risk control.
11.3ODI by Subsidiaries of SOEs
Almost every SOE functions as the headquarters of a large corporate group, with major business operations carried out by subsidiaries at various levels. As a result, ODI Projects of SOEs are mainly executed by different levels of subsidiaries within the SOE group. When carrying out an ODI Project, SOE subsidiaries must comply with the rules governing SOEs, as well as the internal management policies implemented by the parent SOE. The SOE may delegate authority for approving ODI Projects within the group to designated subsidiaries, but the level of subsidiaries authorized to make investment decisions should not exceed two tiers.22
Each year, SOEs must prepare an annual outbound investment plan based on their global operations plan23. This annual outbound investment plan should be included in their general annual investment plan and filed with SASAC24. ODI activities should be included in the annual investment plan, and investments in projects that are not listed in the plan are generally not permitted. If additional investments become necessary, the annual investment plan should be adjusted and refiled with SASAC.
12. Remittance of Initial Expenses
Given the growing uncertainty surrounding FDI reviews (referred to as national security reviews in some jurisdictions), sellers with stronger bargaining positions increasingly demand transaction deposits from Chinese Investors. From a seller's perspective, an ideal arrangement would allow the transaction deposit to convert to a "reserve breakup fee" in the definitive transaction documents, making it subject to forfeiture should the transaction fail to close due to the buyer's actions.
The concept of a transaction deposit is feasible under the China ODI regime, which sets out principles for remitting initial expenses like performance security deposits, service fees for letters of guarantee, third-party service fees and resource exploration fees. The NDRC regulations provide that an Investor may apply for approval/filing for the initial expense by referring the same rules of approval/filing for the ODI Project, and the approved/filed expenses should be counted into the Chinese investment amount approved/filed for the ODI Project.25Subsequently, the Investor must apply for SAFE registration with a qualified bank26 before remitting out the initial expenses. Under SAFE regulations, the total amount of the initial expenses should not exceed 15% of the total investment amount27. However, most Chinese Investors, particularly SOEs, are reluctant to pay large transaction deposits before reaching a definitive agreement with the seller. While theoretically this framework allows for such transactions, in practice, sellers should be aware that securing large transaction deposits from Chinese Investors may be challenging.
13. Conclusion
Over the past decades, China's ODI has a positive momentum. The regulatory framework governing Chinese ODI, while complex, reflects the government's dual objectives of promoting international economic cooperation and safeguarding national interests. From the "Dual Circulation" strategy to the Belt and Road Initiative, Chinese Investors have contributed not only to the development of host countries but also to the global integration of Chinese entities.
The regulatory landscape, shaped by key bodies such as NDRC, MOFCOM and SAFE, continues to evolve in response to global investment trends. While the removal of restrictions in FDI sectors like manufacturing signals China's commitment to openness, the authorities remain vigilant regarding sensitive industries and capital outflows in ODI. For foreign partners, understanding these regulations is essential to navigating transactions with Chinese Investors and ensuring successful collaborations.
Looking to 2025 and beyond, China's ODI is expected to continue playing a pivotal role in fostering high-quality development and sustainable growth worldwide. As Chinese entities increasingly align their overseas investments with global standards and best practices, they are poised to create greater value for local economies, promote technological innovation, and strengthen international partnerships.
For foreign stakeholders, this presents both opportunities and challenges, requiring a nuanced understanding of China's regulatory environment and strategic priorities. In conclusion, the future of China's ODI lies in collaboration and mutual benefit. By embracing transparency, compliance, and cross-cultural understanding, Chinese Investors and their foreign partners can work together to build an interconnected and prosperous global economy.
Footnotes
1 https://www.mofcom.gov.cn/tjsj/gwjjhztj/art/2024/art_ecba8bef0b194b4c99f68ca18c9d9af2.html, accessed February 26, 2025
2 https://www.mofcom.gov.cn/tjsj/gwjjhztj/art/2024/art_898ecaee1c8648d8816718e2533ca319.html, accessed February 26, 2025
3 Administrative Measures on Outbound Investment by Enterprises issued by NDRC, effective March 1, 2018, NDRC Order No.11
4 Administrative Measures on Outbound Investment by Enterprises issued by NDRC, effective March 1, 2018, NDRC Order No.11
5 Circular of the State Administration of Foreign Exchange on Issues Relating to Foreign Exchange Control for Overseas Investment and Financing and Round-tripping by Chinese Residents through Special Purpose Vehicles, effective July 4, 2014, Hui Fa 2014 No. 37
6 SAFE Guidelines on Foreign Exchange Businesses under Capital Accounts (Edition 2024), effective May 6, 2024, Hui Fa 2024 No. 12
7 Further Guiding and Regulating Outbound Investment Orientation, issued by the State Council on August 4, 2017, Guo Ban Fa 2017 No. 74
8 Administrative Measures on Outbound Investment by Enterprises issued by NDRC, effective March 1, 2018, NDRC Order No.11
9 List of Sensitive Industries for Outbound Investment (2018 Version) issued by NDRC, effective March 1, 2018, NDRC Notice No. FaGaiWaiZi2018 251
10 Ancillary Template Documents of the Administrative Measures on Overseas Investment of Enterprises, published by the NDRC in 2018
11 National Overseas Investment Management and Service Network System: http://jwtz.ndrc.gov.cn/jwtz-ex/index.action, accessed February 26, 2025
12 Administrative Measures on Outbound Investment issued by MOFCOM, effective October 6, 2014, MOFCOM Order 2014 No.3
13 Administrative Measures on Outbound Investment issued by MOFCOM, effective October 6, 2014, MOFCOM Order 2014 No.3
14 Uniform Business System Platform of the Ministry of Commerce: http://ecomp.mofcom.gov.cn/loginCorp.html, accessed February 26, 2025
15 SAFE Circular on Issuing Regulations on Foreign Exchange Administration of Overseas Direct Investment by Domestic Institutions, effective August 1, 2009, Huifa 2009 No. 30
16 Notice on Further Simplifying and Improving the Foreign Exchange Administration Policy for Direct Investments issued by SAFE, effective June 1, 2015, Huifa 2015 No. 13
17 Rules of the State Council on the Declaration Threshold for Concentration of Undertakings, effective January 22, 2024, Decree No.773 of the State Council
18 Notice on Further Simplifying and Improving the Foreign Exchange Administration Policy for Direct Investment issued by SAFE, effective June 1, 2015, Huifa 2015 No. 13
19 Measures on the Supervision and Administration of Overseas Investments by Central Entities issued by SASAC, effective January 7, 2017, SASAC Decree No. 35
20 Measures on the Supervision and Administration of Overseas Investments by Central Entities issued by SASAC, effective January 7, 2017, SASAC Decree No. 35
21 There is a market perception that SASAC may periodically issue updated versions of the Negative List to its subordinate SOEs in the form of official "red-headed" documents, as internal guidelines without public disclosure.
22 Measures on the Supervision and Administration of Overseas Investments by Central Entities issued by SASAC, effective January 7, 2017, SASAC Decree No. 35
23 Measures on the Supervision and Administration of Overseas Investments by Central Entities issued by SASAC, effective January 7, 2017, SASAC Decree No. 35
24 Measures on the Supervision and Administration of Investment by Central Entities issued by SASAC, effective January 7, 2017, SASAC Decree No. 34
25 Administrative Measures on Outbound Investment by Enterprises issued by NDRC, effective March 1, 2018, NDRC Order No.11
26 In addition to the 15% threshold, SAFE also required that initial expenses should not exceed USD 3 million in the past, but this requirement was abolished in 2023.
27 SAFE Circular on Issuing Regulations on the Foreign Exchange Administration of Overseas Direct Investment by Domestic Institutions, effective August 1, 2009, Huifa 2009 No. 30
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