Guideline on Outbound Investment Promulgated by State Council of China on August 18, 2017

    View Author August 2017

    On August 18, 2017 the State Council of China issued a guideline to promote outbound investment and minimize associated risks for China (the “Guideline”) as it seeks to stabilize and invigorate its economy.  

    According to the Guideline, outbound investments made by eligible Chinese enterprises must be mindful of potential liabilities and risks, avoid investments in those sectors identified on the so-called Negative List, comply with applicable rules governing liabilities and risks, and cooperate with the relevant local authorities.

    Moving forward, Chinese enterprises should work closely with their advisors to carefully assess the regulatory risks by determining the classification of their intended investments.