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    Business / Economy

    Regulators ease overseas investment

    By LYU CHANG (chinadaily.com.cn) Updated: 2014-04-11 18:43

    China will simplify the process under which domestic enterprises can invest in overseas countries, requiring only registration of deals worth less than $1 billion and easing the declaration process, the country's top economic planner said on Thursday night.

    Under the new regulation, which takes effect on May 8, local companies seeking to make an overseas investment of less than $1 billion no longer need approval from the authorities, the National Development and Reform Commission said on its website.

    Local companies that already have a foothold in overseas countries don't need to provide financial guarantees to their commercial lenders or get approvals or declarations for additional investments.

    However, deals valued at more than $1 billion will still need the approval by the NDRC, while those of $2 billion and above will need the approval of the State Council, China's cabinet, according to the new rules.

    The NDRC said the new rules do not apply to investment projects in "sensitive countries, regions or sectors".

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