Approval Procedures

In pursuance to the statute no. 346 the Provisions on the Guidance to the Orientation of Foreign Investment of the State Council, as well as other relevant laws and regulations, in consideration of the actual situation in Yunnan province, the present Approving Work Procedure of the Foreign Investment in Yunnan Province has been formulated. Prefectures may refer to it in their actual work.

1.The scope of approving foreign investment project at the provincial level

In pursuance to the statute no. 346 the Provisions on the Guidance to the Orientation of Foreign Investment of the State Council, the scope of approval at the provincial level is: the checking, approving, and reporting for record of foreign investment project exceeding the stipulated capital amount, foreign investment project in the restricted category, as well as projects needed to be transferred to the relevant government agencies of the central government for approval.

2. The content of approving at the provincial level and the work responsibilities of various relevant departments

(1). Approval

a. The approval of the project proposal and the project feasibility study of foreign investment project

In pursuance to the Laws on the Business Operation of Sino-Overseas Joint Ventures and the Laws on the Business Operation of Sino-Overseas Cooperative Enterprises, the Provincial Development Planning Commission or the Provincial Economic and Trade Commission are responsible for the approval of the project proposal and the project feasibility study of foreign investment projects. The Provincial Development Planning Commission is responsible for the approval of projects on infrastructure construction, and the Provincial Economic and Trade Commission is responsible for the projects of technical renovation.

b. The official reply on business contract and the articles of incorporation of foreign investment enterprises

The Provincial Department of Foreign Trade and Economic Cooperation is responsible for the approval of the business contract and the articles of incorporation of the foreign investment enterprises, and for the issuance of the Permit of Foreign Investment Enterprises to the relevant enterprises.

c. The issuance of Business License of Enterprises Legal Person to the foreign investment enterprise

The Provincial Administration of Industry and Commerce is responsible for the registration of foreign investment enterprises, and the issuance of Business License of Enterprises Legal Person to the approved enterprise.

(2). Pre-checking and approving

a. The Provincial Department of Land and Resources is responsible for the checking and approving of the land acquisition of the projects and projects to be engaged in the mineral resources development.

b. The Provincial Department of Construction is responsible for being in charge of the pre-checking of the location selection of the project construction planning. The department coordinates the checking and issuance of the Suggestions on the Location of the Construction Project, the Permit of Land Acquisition of Construction Engineering, the Permit of Construction Engineering Planning, checks the technical qualification of foreign investment for market access, and approves its engineering qualification in construction works.

c. The Provincial Environmental Protection Administration provides its preliminary opinion on whether it agrees to conduct environmental appraisal on the suggested plant location.

d. The Provincial Bureau of Quality and Technical Supervision approves and issues organization code certificate to those approved enterprises.

e. Other related functional line departments are responsible for the checking and approving of foreign investment projects in their lines, and provide the opinion of the department in charge of the Chinese partner in the cooperation.

f. The Department of Foreign Trade and Economic Cooperation is responsible for reporting to the Ministry of Commerce for approval of export licenses for those projects requesting export.