New Regulations on Outbound Investment and Business Behaviors of Chinese Private Enterprises

On December 18, five ministries including the National Development and Reform Commission (NDRC), the Ministry of Commerce (MOFCOM), the People's Bank of China (PBOC), the Ministry of Foreign Affairs (MOFA), and the All-China Federation of Industry and Commerce (China Chamber) jointly issued the Regulations on Outbound Investment and Business Activities of Private Enterprises.
 
The document guides Chinese enterprise in preparing foreign investments underlying the Belt and Road Initiative, and to drive exports in products, processes, and services. It demonstrates China’s interest in the international market along the Belt & Road in maintaining a low profile and humble attitude.
 
The policy calls on Chinese enterprises to obey the “law or culture” of host countries or regions, and internal standards. The policy heavily emphasizes the role of contracts, the need for compliance and to be law-abiding, as well as risk-reduction.
The regulation covers five issues besides the "general provisions,” including "improvements to operations and management," "business with compliant and honest behavior," " fulfilling corporate social responsibilities," "efforts in resources and environmental protection," and "attention to preventing and controlling overseas risk".
 
Further, the Regulations clearly specify that the enterprises need to file voluntarily or obtaining approvals for outbound investment, and should not illegally transfer assets, launder money or conduct any other illegal activities.