1. Encouraged and permitted foreign-invested projects

Any foreign-backed project with investment of $500 million or more will have to have its application examined by the National Development and Reform Commission and its contract and company rules examined by the Ministry of Commerce, before being submitted to the State Council for approval.

Any foreign-backed project with a minimum investment of $100 million will have to have its application examined by the National Development and Reform Commission, and its contract and company rules examined by the Ministry of Commerce before being approved.

Any foreign-backed project with a minimum investment of $30 million will have to have its application examined by the provincial development and reform committee (economic committee), which will notify the National Development and Reform Commission for its records. The contract and company rules will be examined by the provincial commerce department, which will notify the Ministry of Commerce for its records. Any foreign-backed project relating to national comprehensive balance, with an investment above a certain amount, will still have to submit its application to the National Development and Reform Commission for approval, and its contract and company rules submitted to the Ministry of Commerce for approval.

The Implementation Measures of the Shanxi Provincial Government on Improving the Investment Environment to Increase Investment state that the provincial government will transfer control over the examination and approval process for foreign-backed enterprises to district cities and development zones at the provincial level or above, except for projects explicitly designated by the central government for approval.

District-level cities and development zones at the province level or above are authorized to approve foreign-backed projects that are encouraged with an investment of less than $50 million.

Taiyuan city is authorized to approve foreign-backed projects that are encouraged with investment of less than $100 million and foreign-backed projects with investment of less than $50 million.

2. Restricted foreign-backed projects

Any foreign-backed project with an investment of $100 million or more will submit its application to the National Development and Reform Commission for examination, and its contract and company rules to the Ministry of Commerce for examination before submitting them to the State Council for approval.

Any foreign-backed project with a total investment of $50 million or more will have its application examined by the National Development and Reform Commission, and its contract and company rules approved by the Ministry of Commerce.

Any foreign-backed project with an investment of less than $50 million will have its application examined by the provincial development and reform committee economic committee for approval. Its contract and company rules are to be examined by the provincial commerce department for approval. Prefecture-level municipal development and reform committees, economic committees, commerce bureaus, and province-level or above development zones do not have the authority to approve restricted foreign-backed projects.

3. Foreign-backed projects involving quotas and license control

Before a foreign-backed project that involves quotas or license controls can submit an application, it has to apply to the Ministry of Commerce for quota and license approval. The Ministry of Commerce is authorized to approve any foreign-backed project that involves quotas or license controls, as regards its contract, transfer, company rules, or major changes in accordance with the law (capital increase, capital decrease, equity transfer, merger).

4. Foreign-backed projects in the service trade

Foreign-backed projects in the service trade have to be examined in relation to special laws and regulations. If no special laws and regulations apply to foreign-backed projects in the service trade, provincial departments ca approval the contract in accordance with procedures, laws, and regulations that govern foreign investment, and file a report with the Ministry of Commerce for its records.