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Circular on Administering Parts of Foreign-Invested Enterprises (FIE) in Service Sectors 商务部关于省级商务主管部门和国家级经济技术开发区审核管理部分服务业外商投资企业相关事项的通知
June 30, 2009
Released on May 4, 2009, and effective as of the same date
With immediate effect, the Ministry and Commerce (MOFCOM) on May 4, 2009, issued a circular containing the guiding opinions for provincial commerce bureaus, and State-level Economic and Technological Development Zones (SETDZ) regarding their authority on administering parts of the FIEs in the service sectors. This circular applies to the establishment and change issues of the FIEs with a total investment amount of US$100 million or below in the encouraged and allowed industries, and FIEs with a total investment amount of US$50 million or below in the restricted industries. The industries in which the FIEs will mainly get involved are:
- Medicine (in the form of EJV and CJV);
- Auction enterprise;
- Sub-distribution enterprise of books, newspapers and periodicals;
- Wholesale enterprise of audio-visual products (in the form of CJV);
- Foreign-invested enterprise of non-gas and mineral exploration; and
- Various non-gas and mineral enterprise.
The provincial commerce bureaus and SETDZ will be responsible for approving the M&A transactions with the amount of US$100 million or below in the encouraged and allowed industries, and the M&A transactions with the amount of US$50 million or below in the restricted industries. Where the establishment of the FIEs is previously approved by MOFCOM, its change issue will now be in the charge of the provincial commerce bureaus and SETDZ.