On June 17, 2014, the Ministry of Commerce released the Circular of the Ministry of Commerce on Improving Foreign Investment Review Administration (the Circular) that simplifies foreign investment review and relaxes certain restrictions on foreign investment.

Key elements of the Circular include:

• The cancellation of the limitations or requirements on the (i) amount of first capital contribution, (ii) amount of monetary capital contribution, and (iii) capital contribution timetable for foreign-invested companies (including Taiwan, Hong Kong and Macau invested companies). Instead, the investors may independently agree upon these terms and specify them in the joint venture (cooperation) contract and the articles of associations.

• The cancellation of the minimum registered capital requirement (other than for certain special industries).

• The requirement for foreign-invested companies to issue capital contribution certificates to investors in accordance with the Company Law, Implementing Regulations on Sino-foreign Equity Joint Ventures, and the Implementing Rules of the Law of People's Republic of China on Sino-foreign Cooperative Joint Ventures.