Guidelines on Further Guiding and Regulating Overseas Investments
Scope of Application
Guidelines for Chinese ministries and regulators, as well as developers and contractors operating overseas.
Purpose
Offers guidance on the types of overseas activities that the Chinese Government will promote, limit, and block.
General Key Points
The Chinese Government should:
- Provide support to financiers when they establish branches and service networks overseas.
- Support financiers to ensure they operate in accordance with relevant laws and regulations.
- Limit overseas investments in countries with no diplomatic ties to China or war zones; countries in violation of United Nations (UN) treaties; and countries that do not meet host country requirements for environmental protection, energy consumption, and safety standards.
- Prohibit overseas investments in sectors banned by international treaties concluded with or signed by China.
Developers and Contractors should:
- Establish an understanding of overseas investment policies and regulations, as well as international best practices.
- Comply with host country laws and regulations.
- Align with host countries’ overall economic and diplomatic strategies.
Key Points on Stakeholder Engagement
The Chinese Government should:
- Emphasize shared, people-oriented development.
- Promote cooperation with local governments and companies to produce mutual economic and social benefits.
- Strengthen review of the authenticity and compliance of overseas investment.
- Establish an overseas investment blacklist and jointly prevent and penalize noncompliance.
- Establish an information-sharing system.
Developers and Contractors should:
- Consider the specific conditions and needs of host countries.
Key Points on Environmental and Social Impact Assessment
The Chinese Government should:
- Report major political, economic, and social risks of host countries in a timely manner.
- Propose response plans and preventive measures to safeguard the legal rights and interests of Chinese companies overseas.
- Establish and improve systems for overseas compliance risk review, control, and decision-making.
Developers and Contractors should:
- Carry out a safety risk assessment for overseas projects.
- Develop measures to prevent and reduce safety risks.