CHINA SYSTEM · OPERATING LOGIC
Read the concept through its operating structure
ODI was reorganised under a higher-level 2026 rule
The State Council outbound-investment regulation took effect July 1, 2026, setting an overarching service, management, protection and supervision framework while NDRC and commerce routes retain distinct objects.
Development-reform authorities govern the project
Sensitive projects may require approval; non-sensitive projects are filed centrally or provincially based on investor and Chinese commitment, including direct, indirect and non-cash exposure.
Commerce authorities govern the destination entity
Commerce authorities approve or file the establishment or acquisition of the offshore entity, focusing on final destination and substantive business.
Banks test authenticity and remittability
Banks verify resolutions, contracts, source of funds, beneficial owners, sanctions/AML and document consistency; filing does not guarantee remittance.
Korea needs a bilateral closing table
Korea should align FDI reporting, competition/security review, share or asset transfer, capital registration and receipt with Chinese procedures and contract failure allocation.