China's State Council Clarifies Policy Considerations of Outbound Investment
On 18 August 2017, the State Council released an opinion (or policy statement) on the “direction and regulation” of outbound investment. Developed by the NDRC, MOFCOM, PBOC and MOFA, the new opinion provides, publicises and codifies a set of principles which the government authorities are to follow in regulating and scrutinising future outbound investments by Chinese enterprises. Its terms should be carefully considered by all parties to Chinese outbound investment transactions and their advisers.
In this alert, we first highlight the key points and take-aways of the State Council’s opinion, followed by a more detailed review.