ISSUING AUTHORITY:

National Development and Reform Commission

DATE OF ISSUANCE:

August 26, 2022

On August 26, 2022, the National Development and Reform Commission (NDRC) promulgated the Administrative Measures for the Review and Registration of Mid- to Long-Term Foreign Debt of Enterprises (Draft - Request for Comments) (the “Measures”). The period for submitting comments ended on September 26, 2022.

After the implementation of the Measures, relevant regulatory authorities will treat foreign debt as a matter subject to “review and registration” instead of in accordance with the current system. Foreign debt will now be officially subject to the requirement of administrative certificates. The Measures further clarify that the supervision process shall also apply to indirect foreign borrowing by enterprises having primary business onshore through entities registered overseas on the basis of shares, assets, earnings or other similar interests of onshore enterprises (for instance, red-chip enterprises); meanwhile, the categories of violations have been expanded to omissions and misleading or false statements in application, disclosure and other issued documents and obtaining the registration certificate by improper means. The Measures imposed greater responsibilities on intermediaries (for instance, professional counselors, agencies and arrangers in debt transactions) and provide for disciplinary actions in cases of non-compliance.

Reference:

国家发展改革委关于《企业中长期外债审核登记管理 办法（征求意见稿）》公开征求意见的通知