China's Ministry of Commerce (MOFCOM) will cancel the examination and approval licensing for dismissing the supervision in advance over the equipments imported by foreign-invested enterprises, and will adopt the record-filing administration over the foreign-invested firms' establishment of branches in China.
Under the Circular on Further Improving the Examination and Approval over the Foreigners' Investment (“Circular”) released by the MOFCOM on March 12, 2009, for the foreign-invested firms which are established upon the MOFCOM's approval, all alternation issues, except the fund increase which exceeds the quota as approved by the National Development and Reform Commission (NDRC) or the equity transfer where the share controlling is transferred to the foreign parties from the Chinese parties, shall be examined and approved by the local competent commercial authorities.
Besides, beginning on the date of promulgation of the Circular, the vice-provincial competent commercial authorities and the national economic and technological development zones shall be entitled to the examination and approval authority which the MOFCOM delegated to the provincial competent commercial authorities prior to the aforementioned promulgation. However, the foreigners' strategic investment in listed firms must be reported to the MOFCOM for examination and approval. (Mar 28th 2009)