Beyond COVID-19: Crisis response or road to recovery?
Crisis response or road to recovery?
On 1 March, 2018, the Administrative Measures for Outbound Investment by Enterprises (NDRC Order No. 11) were formally implemented, which sets out detailed requirements for approval and filing of outbound investment projects by domestically-funded enterprises.
Our foreign clients who are doing or intending to do transactions with Chinese companies outside of China should be aware of the rules as this will significantly affect the timeline for transaction and deal certainty, including specifically CP for closing and break fee arrangement.
Projects in sensitive countries or regions, or those that fall into sensitive industry sectors, are subject to approval by the National NDRC.
Projects that are not in sensitive countries or regions, or those that are not in sensitive industry sectors. Filing responsibility falls into two categories:
Approval or filing is not required by non-sensitive projects implemented by offshore subsidiaries using their own assets/fund and who are not seeking any capital injection / financial support / guarantee from their domestic parents. However, if the investment amount reaches USD300 million, national NDRC shall be notified.
Applications for approval, filing or notification must be made prior to the project implementation (i.e. prior to the financial close of the projects), in one of two ways:
Responsibility for making an application depends on the investor type:
Within five working days, the relevant NDRC will decide whether the application is accepted or rejected or additional documents are required. Then:
The approval or the notice of filing is valid for two years. The project must be completed within that period.
As the global aviation industry looks towards post-pandemic recovery and less turbulent skies, it is the topic of decarbonisation that is increasingly top of everyone’s agenda. There have been a number of eye-catching announcements around the world in recent weeks, from United Airlines announcing its intention to purchase 100 electric aircraft, an increased focus on the use of sustainable aviation fuel (SAF) from several airlines, and Korean Air utilising the green bond markets.
© Norton Rose Fulbright LLP 2021