China’s Ministry of Commerce Delegates More Foreign Investment Authority to the Provinces

December 08, 2008
China’s Ministry of Commerce (MOFCOM) recently issued two circulars that contain important provisions for foreign-invested enterprises (FIEs) in China. The circulars delegate certain types of approval authority exercised previously by MOFCOM itself to provincial authorities and are of particular interest to enterprises in the wholesale and retail businesses that wish to enter the PRC market as well as to existing FIEs whose initial establishment was approved by MOFCOM. This update summarizes the new FIE regulations contained in these circulars and the likely effect they will have on streamlining the MOFCOM approval process for certain foreign investors seeking to establish or increase their operations in China.