MOFCOM and SAFE Announce Additional Rules on Foreign Invested Holding Companies


On 8 December 2011, the Ministry of Commerce of China (“MOFCOM”) and the State Administration of Foreign Exchange (“SAFE”) promulgated the Notice on Further Improving Management Measures Concerning Foreign Invested Holding Companies (the “Notice”).

A Foreign Invested Holding Company (“FIHC”) refers to a foreign invested enterprise (“FIE”) in the form of a wholly foreign-owned enterprise (“WFOE”) or an equity joint venture established to engage in direct investments or to hold equity interests in other companies in China.

There are 2 key points in connection with the Notice that are noteworthy...

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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