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Circular to Regulate the Overseas Investment and Cooperation of Chinese Companies

Scope of Application

Guiding principles and objectives for developers and contractors operating overseas, in addition to relevant departments in the Chinese Government. Companies that violate this circular should be reported to and penalized by the Ministry of Commerce (MOFCOM), Ministry of Foreign Affairs (MFA), and State-owned Assets Supervision and Administration Commission of the State Council (SASAC).

Purpose

Offers basic guidance to ensure proper regulation and implementation of overseas projects and safeguard relations with other countries.

General Key Points

Developers and Contractors should:

  • Comply with Chinese and host countries' laws and policies, especially on environmental protection, labor employment, immigration management, safety, production, and tender bidding for overseas investment projects.

 

Central State-Owned Enterprises (CSOEs) must:

  • Abide by Chinese and host countries’ laws.
Key Points on Stakeholder Engagement

Developers and Contractors should: 

  • Provide workers with wages, benefits, and working conditions in accordance with laws and contracts.
  • Broaden communication channels with workers and actively respond to their demands. 
  • Strengthen communication with local trade union organizations, religious and ethnic leaders, and the media, among other stakeholders. 
  • Create jobs for locals.
  • Avoid involvement in local economic and political disputes or sensitivities. 
  • Respect local customs and religious practices.
  • Improve relations with local people. 
  • Enhance social responsibility.
    • Improve relations by being honest and fostering trust.
Key Points on Environmental and Social Impact Assessment

Developers and Contractors should:

  • Effectively manage resources and protect the environment.
Applies to
Global
Date
June 2008
Issuer(s)
Ministry of Commerce (MOFCOM), Ministry of Foreign Affairs (MFA), and State-owned Assets Supervision and Administration Commission of the State Council (SASAC)
Link to Full Version(s)