On 31 May 2022, the State Administration of Foreign Exchange of the PRC released a circular on supporting high-tech enterprises and specialized, sophisticated, distinctive and innovative enterprises to carry out cross-border financing facilitation pilot on its website.

According to the Measures for the Administration of Overseas Investment issued by the Ministry of Commerce of the PRC and other relevant laws and regulations, the responsible person of an overseas Chinese-funded enterprise (institution) or its designated representative shall report to and register with the economic and commercial office of the embassy or consulate of the PRC in the country

As defined by the Ministry of Commerce (MOFCOM) of the PRC, reinvestment of overseas Chinese-funded enterprise refers to the overseas investment made by an overseas destination enterprise that have already completed overseas direct investment (ODI) approval or filing procedures, using its operating profits or self-raised funds from overseas (e.g., loans from overseas banks).

According to the relating PRC laws and regulations, overseas direct investment (ODI) conducted by Chinese enterprises are subject to approval or filing procedures with the National Development and Reform Commission (NDRC) or its local branches and Ministry of Commerce (MOFCOM) or its local branches before the investment is made, which aims to ensure the legal and compliant remittance of investment funds.

In recent years, more and more Chinese enterprises have established companies or branches in other countries in order to explore overseas markets. When an overseas company or branch is cancelled due to project completion or other reasons, does the domestic enterprise is required to cancel the overseas direct investment (ODI) filing or approval obtained before?

As more and more Chinese enterprises carry out overseas direct investment (ODI), China has updated and released a series of regulations and policies on overseas direct investment of enterprises in recent years. Kaizen has summarized the application procedures and reporting obligations involved in the two articles, Guidelines on the Approval or Filing of ODI by Chinese Enterprises and Reporting Obligations for Chinese ODI Investors.

The Chinese overseas direct investment (ODI) investors are required to report their overseas investments data to the competent administration authorities in accordance with the laws and regulations when they have completed the filing or approving procedures for overseas direct investment. The competent administration authorities include the relevant commerce bureau, development and reform commission, foreign exchange administration bureau.

With the deepening of China's opening-up and one belt one road construction, more and more Chinese enterprises start to go global. In order to regulate the overseas direct investment (ODI) conducted by Chinese enterprises, the National Development and Reform Commission (NDRC), the Ministry of Commerce (MOFCOM)