Overseas investment from China has experienced rapid growth each year in the last several years, with the Ministry of Commerce (“MOFCOM”) reporting USD735.1 billion in new investment having been deployed overseas by Chinese investors in 2015. At the same time, the growing volume of overseas investment masks challenges. Often a significant obstacle to successful completion of an overseas acquisition by a Chinese enterprise, particularly in the context of a competitive bid, is the set of Chinese regulatory filings to which the acquisition is subject. These filings often contribute uncertainty to the transaction and cause delays and are a source of frustration for both Chinese enterprises and their overseas investment targets.

Both MOFCOM and the National Development and Reform Commission (“NDRC”) have taken steps over the last three years to simplify and streamline the regulatory framework for overseas investment. Based on the release on April 13, 2016, of the Draft NDRC Decision on Revising the Administrative Measures on Approval and Record-filing of Outbound Investment Projects the “Consultation Draft”), it seems that the NDRC contemplates more far-reaching reforms. The period for public consultation in respect of the Consultation Draft ended on May 13, 2016, and it is expected that the NDRC will issue amended rules on outbound investment projects based on the Consultation Draft soon.