China's National Development and Reform.......>

CHINA: China's National Development and Reform Commission (NDRC) issued a draft

guideline on outbound investments and deals on Friday, seeking public comment on

a proposed guideline that would reduce or eliminate some administrative rules,

including a rule requiring that Chinese companies investing over $300 million

overseas seek approval from the state planner. The guideline aims to "improve

oversight, safeguard national security and support the healthy development of

outbound investments," the regulator said. At the same time, the new rules would

also increase oversight on investments by overseas subsidiaries of Chinese

companies, as well as for investments in sensitive sectors and countries, it

said. Media organizations, weapons manufacturers, companies involved in

multinational water resources exploitation or those that China's national

macroeconomic policies restrict investment in were listed as sensitive sectors.

Punishments for companies that use illegal measures to invest overseas, engage

in unfair competition or damage national security will be increased, the rules

said.