CHINA is planning to remove the need for State Council approval for large, sensitive outbound deals and will allow Chinese companies to vie for the same target, a move likely to further boost record overseas acquisitions by Chinese companies.

    China’s chief outbound investment regulator, the National Development and Reform Commision (NDRC), has published draft rules aimed at both speeding up approvals and allowing head-to-head competition between Chinese bidders.

    Under the proposed rule changes, Chinese firms seeking to carry out a deal of US$2 billion or more in sectors or countries that China deems sensitive will no longer need approval from the State Council, or to provide proof of financing.

    The State Council, or Cabinet, is chaired by Premier Li Keqiang and includes the heads of major departments and agencies. Sensitive deals will still need the approval of the NDRC and the Ministry of Commerce, China’s other investment regulator.

    The NDRC has also proposed reducing the role its regional bureaus play in approving regular deals, a move that should strip out an extra layer of red tape faced by firms based in far-flung provinces.

    The draft was published online in early April, just as China’s outbound push seemed to have stalled following Anbang Insurance Group Co.’s decision to drop its bid for Starwood Hotels.

    The proposal would also remove the NDRC’s discretionary power to operate an informal policy of giving one Chinese company the exclusive right to bid for an overseas deal. (SD-Agencies)