MOFCOM definition
Examples of MOFCOM in a sentence
Unlike previous MOFCOM regulations on FDI, the MOFCOM RMB FDI Circular removes the approval requirement for changes in the relevant joint venture contract or the articles of association of the joint venture company where foreign investors change the currency of its existing capital contribution from a foreign currency to Renminbi.
Pursuant to the MOFCOM RMB FDI Circular, the competent counterpart of MOFCOM will grant written approval for each FDI and specify “Renminbi Foreign Direct Investment” and the amount of capital contribution in the approval.
The domestic settlement banks of foreign investors or foreign invested enterprises in the Chinese Mainland are required to submit written applications to the relevant local PBOC authorities which include, inter alia, requisite approval letters issued by the relevant MOFCOM authorities.
In addition, the MOFCOM RMB FDI Circular also clearly prohibits the FDI funds from being used for any direct or indirect investment in securities and financial derivatives (except for strategic investment in the Chinese Mainland listed companies) or for entrustment loans in the Chinese Mainland.
On 3 December 2013, MOFCOM promulgated the Circular on “Issues in relation to Cross-border Renminbi Foreign Direct Investment” (商務部關於跨境人民幣直接投資有關問題的公告) (the “MOFCOM RMB FDI Circular”), which has become effective on 1 January 2014, to further facilitate FDI by simplifying and streamlining the applicable regulatory framework.