State Council Stipulates Penalties for Non-Compliant Overseas Investment: Fines of 5‰-10‰ of Investment Amount

GateNews
According to the State Council regulation on overseas investment issued in June 2026, investors who fail to comply with mandatory requirements for foreign investment approval and filing procedures will face significant penalties. The National Development and Reform Commission and Ministry of Commerce are authorized to order suspension of non-compliant investment activities and mandate asset disposition within a specified timeframe. Violators will face confiscation of illegal gains and fines ranging from 5‰ to 10‰ of the investment amount for refusal to comply. Direct supervisors and other personnel bearing direct responsibility face individual fines between 50,000 and 100,000 yuan.
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