On May 11, 2013, the State Administration of Foreign Exchange (“SAFE”) issued the Provisions for Administration of Foreign Exchange Relating to Inbound Direct Investment by Foreign Investors ( “Circular 21”), effective May 13, 2013. Circular 21 represents a further step by SAFE to simplify and unify the relevant foreign exchange registration procedures following issuance of the Circular on Further Improvement and Amendment of Foreign Exchange Control Policies on Direct Investment (“Circular 59”) (effective in December 2012).

As discussed in a prior Morrison & Foerster alert, Circular 59 covers foreign exchange filings relating to both foreign direct investment into China (“FDI”) and Chinese outbound investment. Circular 21 was issued to further clarify Circular 59 with regard to FDI, and supplements Circular 59 by confirming additional types of foreign exchange registrations.