CBL Team’s Introduction
CBL’s translation of the Ministry Circular on Reporting Requirements for Foreign Investments offers insights for investment reporting processes in China. The Circular describes submission guidelines, correction requirements, and public disclosure norms for annual foreign investment information reports. Its understanding is critical for businesses navigating China’s foreign investment regulation landscape, ensuring compliance with regulatory mandates and ensuring the company receives due protection under the Foreign Investment Act.
Circular from the Ministry of Commerce, the National Administration for Market Regulation, and the National Administration for Foreign Exchange on the Submission of the Foreign Investment Information Annual Report for 2019
The purpose of this notice is to implement the CPC Central Committee and State Council directive and plans to encourage foreign investment, to improve the implementation of the Foreign Investment Law, to implement the Foreign Investment Information Reporting System, and to improve the business landscape by delegating governmental functions. Since January 1, 2020, the Ministry of Commerce, the National Administration for Market Regulation, and the National Administration for Foreign Exchange have required the submission of annual reports for entities that have foreign investors, in compliance with the Foreign Investment Information Reporting Procedures and the Notice on Matters Concerning Reports on Foreign Investment Information. This announcement covers the 2019 foreign investment annual report requirements:
- Entities that have foreign investment which formed and registered in China before December 31, 2019 must log in to the National Business Credit Lookup System between January 1 and June 30, 2020 to submit annual reports. (URL: www.gsxt.gov.cn) The information will be shared with the jurisdictional commerce agency, the National Administration for Market Regulation, and the National Administration of Foreign Exchange.
Entities formed after January 1, 2020 shall submit their annual reports beginning the following year.
- Please refer to the Notice on Foreign Investment Information Reports for information regarding the annual report’s content (Notice 62 of the Ministry of Commerce in 2019).
- Under the Temporary Regulations on Foreign Investment Information Reporting (State Council Order No. 654), the investment and operation information provided by entities in the annual report must be provided to public records (or the entity must provide such authorization); such information must be made publicly available though the Foreign Investment Information Reporting Management System (wzxxbg.mofcom.gov.cn/gsp) and the National Business Credit Lookup System (www.gsxt.gov.cn).
- Seven days after the submission of their annual reports through the National Business Credit Lookup System, the entity may log in to the Foreign Investment Information Reporting Management System to verify whether the jurisdictional commerce agency has received it. If their annual reports are not made public in the Foreign Investment Information Reports Management System, the entity must inform the jurisdictional commerce agency.
To address mistakes or omissions in their annual reports, the entity must submit updates or revisions through the National Business Credit Lookup System by June 30, 2020; After July 1, 2020, foreign business entities must request that the jurisdictional commerce agency supplement or amend any inaccuracies or omissions in their annual reports using the Foreign Investment Information Reports Management System (wzxxbg.mofcom.gov.cn). Entities unable to file annual reports will be listed as suspicious and must complete the procedures under Temporary Rules on Entity Information Disclosure.
- Businesses financed and developed in China by foreign investment partnerships, venture capital entities, and other foreign entities operating in China, investment is their primary business, must present their annual reports in a manner similar to that of foreign owned entities.
- Entities formed in China for investment purposes (including investment through intermediaries) must file annual reports as required by with the Temporary Rules on Business Information Disclosure; such information may be shared with the jurisdictional commerce agency by the market regulation agency. Entities are not obligated to resubmit their reports.
- This Circular will take effect on January 1, 2020.
The Ministry of Commerce, the National Administration for Market Regulation, and the National Administration for Foreign Exchange
December 31, 2019