Laws of the People's Republic of China

Ministry of Commerce

Announcement on Transferring Power of Administration on Registration of Foreign Invested Enterprise and Releasing of Approval License to Lower Levels, and Going Further to Simplify Procedures of Examination and Approval

[2005] No.59

In accordance with State Council's Decisions on Canceling and Adjusting the Third Batch of Program of Administrative Examination and Approval (No.16, 2004), power of administration of ministries and commissions, and departments directly under the State Council (hereinafter referred to as related departments of State Council) on registration of foreign invested enterprise (including contract and charter) and releasing of approval license is now transferred to administrative commercial departments of provinces, autonomous regions, municipalities and separately listed cities in plan (hereinafter referred to as provincial administrative commercial departments). Related matters are now announced as follows:

1.

Authorized by State Council, when approving establishment or alteration of foreign invested enterprises, related departments of State Council should transfer approval documents of enterprises (including declaration materials like contract and charter) to provincial administrative departments for registration. The approval licenses of foreign invested enterprises will be released by provincial people's governments.

For new established projects approved by related departments of State Council, the contracts and charters should be transferred to provincial people's governments, by which the approval licenses will be released as well.

2.

When going facilities of above registration, license releasing, alteration and license exchange, local administrative commercial departments should add up programs of new established, capital increasing or capital decreasing in accordance with relevant regulations of foreign investment statistics; however, registration and alteration of other types or exchanges of approving license of foreign invested enterprises can not be calculated in foreign investment statistics.

3.

Administrative commercial departments at all levels should go further to simplify approval procedures for the convenience of foreign invested enterprises.

This announcement will take effect as form Jan 1, 2006.

Ministry of Commerce

November 14, 2005