On Dec 20, the State Council released the Catalogue of Investment Projects (2016) approved by the government.
The move is aimed at further pushing administrative reform, optimizing services, stimulating new vitality and acknowledging the market’s decisive role in resource allocation.
The investment projects included in the new catalogue should go through the approval process, while others only need to file papers.
The approval standards are based on several core criteria, including laws and regulations, development plan, market access condition, industrial, land and environmental policies.
The circular emphasized that industries plagued by serious overcapacity issues such as steel and iron, cement, and boats and ships are not allowed to apply for new production capacity projects, in an effort to better resolve the issue of excess capacity.
In addition, it specifically required that traditional fuel automotive projects should not be approved, as the development of new-energy car industry is being promoted.
In terms of outbound investment involving sensitive regions or projects, they should go through the approval process with the related department under the State Council.