China flag China: Investing in China

Investment framework and opportunities in China

Procedures Relative to Foreign Investment

Freedom of Establishment
The Foreign Investment Law of the People's Republic of China implements a “pre-establishment national treatment” plus “negative list management” system for foreign investment. “Pre-establishment national treatment” refers to the treatment given to foreign investors and their investments with regard to market access, which may not be less favourable than that given to their domestic investors and their investments. The “negative list” refers to the special administrative measures for the access of foreign investment in specific fields, which will be issued or approved for issue by the State Council. The Law provides that the state grant national treatment to foreign investment that are not included in the negative list.
Acquisition of Holdings
The acquisition of majority interest in a local company is authorised in China. M&A activities are subject to different regulations depending on whether the company is a public, a non-listed public company or foreign.
Obligation to Declare
The China International Investment Promotion Agency facilitates the distribution of information on necessary authorisations for establishing a business in the country. All proposed foreign investment projects in China must be submitted for 'verification' and approval to the National Development and Reform Commission (NDRC) or to provincial or local Development and Reform Commissions (depending on the sector and value of the investment.
Competent Organisation For the Declaration
National Development and Reform Commission (NDRC)
Ministry of Commerce (MOFCOM)
Requests For Specific Authorisations
Business plans must be submitted for approval to competent authorities prior to the beginning of business activity. If a foreign investor intends to establish a foreign-funded enterprise by merging a domestic enterprise in accordance with these provisions, he/she shall be subject to the approval of the “examination and approval organ” and modify the registration or go through the establishment registration in the “registration administrative organ”. “Examination and approval organ” refers to the Ministry of Commerce. The term “registration administrative organ” refers to the State Administration for Industry and Commerce (SAIC) or its authorized local administrations for industry and commerce. Chinese State-Owned Enterprises are often the targets of foreign investors. Although, it is important to note that additional rules apply to the purchase of State-Owned Enterprises by foreign investors in China. Greenfield investment projects must also seek approval from China's Environmental Protection Ministry and its Ministry of Land Resources.

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Investment Opportunities

Investment Aid Agency
Invest in China (Ministry of Commerce of the People's Republic of China)
Tenders, Projects and Public Procurement
Tenders Tiger, Tenders in China
Tenders Info: Global Procurement Facilitator, Tenders in China
Asian Development Bank, Procurement Plans in Asia
DgMarket, Tenders Worldwide
Other Useful Resources
Ministry of Commerce (People's Republic of China)
China Internet Information Center (The authorized government portal on China)

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Latest Update: June 2022

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