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Administrative Examination and Approval

  (1) The present status ofShanghai's foreign investment administrative examination and approval service. According to the state regulations, foreign investment projects are still subject to the examination and approval system at present, but the examination and approval procedures should be simplified and the time for the examination and approval shortened for convenience of investors, and the emphasis of the government function has changed from prior examination and approval to administration and service afterwards.ShanghaiMunicipalityhas converted the examination and approval process of foreign investment projects into a process of service, coordination and balancing for investors, and minimized uncertain investment risks of foreign investors by trying to solve in the examination and approval process all kinds of problems which may probably exist in the preparatory phase of projects.
  (2) Administrative examination and approval authorities and their power. At present, The foreign investment administrative examination and approval authorities of Shanghai Municipality, under the relevant laws, regulations and policies, are responsible for the examination and approval of any foreign-invested project falling within the encouraged and permitted categories and with the total amount of investment below 100 min. US Dollars, and of any foreign-invested project falling within the limited categories and with the total amount of investment below 50 min US Dollars. The power to examine and approve any project falling within the encouraged categories and with the total amount of investment below 30 min US Dollars, and of any project falling within the permitted categories and with the total amount of investment below 10 min US Dollars, has been passed down to districts and counties. Authorized units concerned have been empowered to examine and approve any investment project in state development zones and municipal development zones, falling within the encouraged categories and permitted categories and with the total amount of investment below 30 min. US Dollars.
  For any newly-established foreign-invested project, or foreign-invested project falling within the encouraged categories and permitted categories, increasing its investment by a total amount of over 100 min US Dollars at a time, and any project falling within the limited categories and with the total amount of investment over 50 min US Dollars, a "Project Application should be submitted to the State Development and Reform Commission for examination and approval; the "Contract and Articles of Association should be submitted to the Ministry of Commerce after its approval, and a certificate of approval will be issued by the Ministry of Commerce after its approval.
  Besides, foreign investments in related lines of business of the service trade should conform to the existing regulations of the state on the special issue, and are still subject to the examination and approval by the state if prior examination and approval by the ministries and commissions concerned are required.
  (3) Simplification of Administrative Examination and Approval procedures and Reform in Systems.
  Except for the projects, which need be submitted to the department concerned of the State Council for examination and approval, involving capital construction or should conform to other regulations of the state, the three examination and approval phases of project proposal, feasibility study report and company's contract and articles of association related to the establishment of foreign-invested projects can be combined into one examination and approval step. Replies in fixed forms have been introduced to give amendments to the general conditions of the contract and articles of association of foreign-invested enterprises, and the forms can be down-loaded and printed from the government Web-site. The power of direct issuance of certificates of approval has been passed down to districts (counties) for foreign-invested projects within their power of examination and approval and the Municipal Foreign Investment Commission exercises supervision and inspection afterwards.
  Shortening time for administrative examination and approval. Except for the projects which require coordination and are to be submitted to the State Council, the examination and approval of a project takes less than 20 work-days. Replies in fixed forms are introduced to give amendments to the general conditions of the contract and articles of association, and the time for processing is shortened to 3 work-days after acceptance. Certain routine service items can be processed right away with no need for the applicant to come again.
  

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