What types of outbound transactions will not be approved by Chinese authorities?

The Chinese government introduced new capital controls in 2016 for the following outbound transactions that would not be approved without specific approval:

• Outbound investments made by limited partnerships;
• FDI involving an acquisition of 10 percent or less of the shares of an overseas listed company;
• Overseas investments made by newly-established entities without substantial operations;
• Outbound transactions inside the core business of the company involving US$ 1 billion or more;
• Transactions involving domestic capital participation in the delisting of overseas listed Chinese enterprises.

Government scrutiny of ODI varies based on the amount of money being sent, the industry of the target, the receiving country, and the investor.