China to revise regulations for outbound investment

BEIJING, Aug 21 (Reuters) – China will revise measures for managing outbound investment to better protect investors’ rights and assets and fend off risks overseas, the National Development and Reform Commission (NDRC) said on Friday.

The state planner released a draft of the revised rules and is seeking public comments until September 20.

The revised regulations would cover outbound investments by companies, other organisations and individuals, expanding from existing rules, which came into effect in 2018 and applied to companies’ and non-corporate organisations’ investment.

The revisions are in line with the policies of the central government, the planner said, noting that the State Council, China’s cabinet, issued new rules for outbound investment in June.

Under the NDRC’s revised measures, China will improve a reporting system for “major adverse events”, citing cases where countries or regions adopted “discriminatory” measures and demanded Chinese entities provide technology or data or dispose of equity or assets.

China would also set up a preliminary work reporting system for large-scale projects that concern Beijing’s diplomatic relations with other countries, the NDRC said. 

The revised rules will also step up protection for investors against risks such as political instability in some countries, it said.