General Office of the State Council forwarded to Ministry of Commerce of National Development and Reform Commission.
Ministry of Foreign Affairs of the People’s Bank of China on Further Guiding and Regulating Overseas
Notice of Guiding Opinions on Investment Direction
Guo Ban Fa [2017] No.74
People’s governments of all provinces, autonomous regions and municipalities directly under the Central Government, ministries and commissions and institutions directly under the State Council:
The Guiding Opinions of the National Development and Reform Commission, the Ministry of Commerce, the People’s Bank of China and the Ministry of Foreign Affairs on Further Guiding and Regulating the Direction of Overseas Investment have been approved by the State Council and are hereby forwarded to you. Please implement them carefully.
the General Office of the State Council
August 4, 2017
(This piece is publicly released)
On further guidance and standardization
Guiding opinions on the direction of overseas investment
National Development and Reform Commission, Ministry of Commerce, People’s Bank of China and Ministry of Foreign Affairs
In recent years, the pace of overseas investment by Chinese enterprises has been significantly accelerated, and the scale and benefits have been significantly improved, which has played an important role in driving related products, technologies and services to "go global", promoting domestic economic transformation and upgrading, deepening mutually beneficial cooperation with relevant countries, promoting the "Belt and Road" construction and carrying out international capacity cooperation. At present, the international and domestic environment is undergoing profound changes. Chinese enterprises have both good opportunities and many risks and challenges in overseas investment. In order to strengthen the macro guidance of overseas investment, further guide and standardize the direction of overseas investment, promote the sustained, reasonable, orderly and healthy development of overseas investment, effectively prevent all kinds of risks, and better meet the needs of national economic and social development, we hereby put forward the following opinions:
一、指导思想
全面贯彻党的十八大和十八届三中、四中、五中、六中全会精神，深入贯彻习近平总书记系列重要讲话精神和治国理政新理念新思想新战略，认真落实党中央、国务院决策部署，统筹推进“五位一体”总体布局和协调推进“四个全面”战略布局，坚持以人民为中心的发展思想，坚持稳中求进工作总基调，牢固树立和贯彻落实创新、协调、绿色、开放、共享的发展理念，坚定奉行互利共赢的开放战略，不断创造更全面、更深入、更多元的对外开放格局，以供给侧结构性改革为主线，以“一带一路”建设为统领，深化境外投资体制机制改革，进一步引导和规范企业境外投资方向，促进企业合理有序开展境外投资活动，防范和应对境外投资风险，推动境外投资持续健康发展，实现与投资目的国互利共赢、共同发展。
二、基本原则
——坚持企业主体。在境外投资领域充分发挥市场在资源配置中的决定性作用和更好发挥政府作用，以企业为主体、市场为导向，按照商业原则和国际惯例开展境外投资，企业在政府引导下自主决策、自负盈亏、自担风险。
— — Insist on deepening reform. Innovate the system and mechanism, improve the level of facilitation of overseas investment, further promote the reform of decentralization, combination of decentralization and management, and optimize services, adhere to the management mode of overseas investment with the filing system as the mainstay, implement a managed market-oriented operation mechanism under capital, and guide and standardize the direction of overseas investment of enterprises according to the model of "encouraging development+negative list".
— — Adhere to mutual benefit and win-win. Guide enterprises to fully consider the national conditions and actual needs of investment destination countries, pay attention to mutually beneficial cooperation with local governments and enterprises, create good economic and social benefits, and promote mutual benefit and win-win cooperation.
— — Insist on preventing risks. Adhere to the general tone of striving for stability, coordinate the overall strategy of national economic diplomacy, adhere to legal compliance, reasonably grasp the focus and rhythm of overseas investment, actively supervise overseas investment before, during and after, and effectively prevent various risks.
III. Overseas investment encouraged
Support domestic capable and qualified enterprises to actively and steadily carry out overseas investment activities, promote the construction of the "Belt and Road", deepen international capacity cooperation, promote the export of domestic superior production capacity, high-quality equipment and applicable technologies, enhance China’s technology research and development and manufacturing capabilities, make up for the shortage of energy resources in China, and promote the upgrading and upgrading of related industries in China.
(1) Focus on promoting overseas investment in infrastructure that is conducive to the "Belt and Road" construction and the interconnection of surrounding infrastructure.
(two) to steadily carry out overseas investment to promote the export of superior production capacity, high-quality equipment and technical standards.
(3) Strengthen investment cooperation with overseas high-tech and advanced manufacturing enterprises and encourage the establishment of R&D centers overseas.
(four) on the basis of careful evaluation of economic benefits, to participate in the exploration and development of overseas energy resources such as oil and gas and minerals.
(5) Efforts should be made to expand agricultural cooperation with foreign countries and to carry out mutually beneficial and win-win investment cooperation in agriculture, forestry, animal husbandry and by-fishing.
(6) Promote overseas investment in services such as commerce, trade, culture and logistics in an orderly manner, support qualified financial institutions to establish branches and service networks overseas, and conduct business in compliance with laws and regulations.
IV. Restricted overseas investment
Restrict domestic enterprises from conducting overseas investments that are inconsistent with the country’s foreign policy of peaceful development, the strategy of mutual benefit and win-win opening-up and macro-control policies, including:
(a) to conduct overseas investment in sensitive countries and regions that have not established diplomatic relations with China, are at war, or need to be restricted according to the provisions of bilateral and multilateral treaties or agreements concluded by China.
(two) real estate, hotels, cinemas, entertainment, sports clubs and other overseas investments.
(three) the establishment of overseas equity investment funds or investment platforms without specific industrial projects.
(four) the use of backward production equipment that does not meet the requirements of the technical standards of the investment destination country to carry out overseas investment.
(five) overseas investment that does not meet the environmental protection, energy consumption and safety standards of the investment destination country.
Among them, the first three categories must be approved by the competent department of overseas investment.
V. Prohibited overseas investment
It is forbidden for domestic enterprises to participate in overseas investments that endanger or may endanger national interests and national security, including:
(1) Overseas investment involving the export of core technologies and products of military industry that have not been approved by the state.
(two) overseas investment in the use of technologies, processes and products prohibited by China.
(3) Overseas investments such as gambling and pornography.
(4) Overseas investment prohibited by international treaties concluded or acceded to by China.
(5) Other overseas investments that endanger or may endanger national interests and national security.
VI. Safeguard measures
(1) Implementing classified guidance. To encourage overseas investment, we should further improve the service level in taxation, foreign exchange, insurance, customs and information, and create better convenience conditions for enterprises. For overseas investment that is restricted, enterprises should be guided to participate cautiously, and necessary guidance and tips should be given according to the actual situation. Effective measures should be taken to strictly control the prohibited overseas investment.
(2) Improve the management mechanism. Strengthen the authenticity and compliance review of overseas investment and prevent false investment behavior. Establish a blacklist system for overseas investment and implement joint punishment for illegal investment. Establish inter-departmental information sharing mechanism. Guide domestic enterprises to strengthen supervision and management of overseas enterprises under their control, and establish and improve overseas investment decision-making, financial management and accountability system for violations. Establish a capital system for overseas investment of state-owned enterprises. Improve the audit system of overseas investment of state-owned enterprises and safeguard the safety of overseas state-owned assets.
(3) Improve the service level. Formulate the code of conduct for overseas investment and operation, guide enterprises to establish and improve the risk review, control and decision-making system for overseas compliance operation, have a deep understanding of overseas investment cooperation policies and regulations and international practices, abide by local laws and regulations, and operate legally. Strengthen institutionalized cooperation with relevant countries in investment protection, finance, personnel exchanges, etc., and create a good external environment for enterprises to invest abroad. Support the development of domestic intermediary agencies such as asset appraisal, legal services, accounting services, tax services, investment consultants, design consultants, risk assessment, certification and arbitration, provide market-oriented, socialized and international business consulting services for enterprises’ overseas investment, and reduce the risks of enterprises’ overseas investment and operation.
(4) Strengthen security. Regularly issue the Report on the Facilitation of Country Investment and Operation, strengthen the guidance and supervision of enterprises’ investment in high-risk countries and regions, timely warn and inform the major political, economic and social risks of relevant countries, put forward response plans and preventive measures, and earnestly safeguard the legitimate rights and interests of Chinese enterprises abroad. Supervise and urge enterprises to carry out safety risk assessment of overseas projects, do a good job in predicting and responding to project safety risks, establish and improve security systems, strengthen security training, and enhance the ability of enterprises to prevent safety risks from overseas investment.
All regions and departments should, in accordance with the requirements of this opinion, reasonably grasp the direction and focus of overseas investment, earnestly strengthen organizational leadership and overall coordination, implement work responsibilities, promptly formulate and introduce supporting policies and measures, and solidly promote related work to ensure effective results.
