The Decision of the State Council on Reforming the Investment System stated that the government shall examine a project application from the perspectives of safeguarding economic security, proper development and use of resources, ecological environment protection, key layout optimization, protecting public interests and prevention of monopoly. in addition, for foreign-invested project, the government shall examine and approve market access, capital project management and so on.
According to the Interim Measures for Examining and Approving Enterprises’ Investment Projects (Order NO.19 of National Development and Reform Commission), a project approving organ shall examine a project in terms of the following aspects: whether it conforms to Chinese laws and regulations; whether it is in line with the national economic and social development planning, the industrial planning, the industrial policies, the industrial access standards and the overall land use planning; whether it is in line with the national macro-control policies; whether the regional development pattern will be reasonably formulated; whether the main products monopolize the domestic market; whether it will affect the economic security of the state; whether the resources will be reasonably developed and efficiently used; whether the ecological environment and the natural cultural heritage will be effectively protected; and whether it will exert a material adverse impact on the public interests, especially the public interests of the locality of the project.
According to the measures mentioned above, a project approving organ shall focus on the aspects below when examining an investment project:
1. Project target positioning and planning background. It shall evaluate the project based on overall strategy, emphasize the guidance of medium- and long-term plans of national economy and social development, key exclusive planning and regional and industry development planning
2. on the project, analyze the consistency and coordination between the project and urban system planning, general municipal planning, plans of land use and policies of environmental protection.
3. Plan of land use. It shall be in line with the general planning of national land use, and strictly follow relevant laws and regulations on land administration for ensuring the land use in a law-abiding, scientific and reasonable manner.
4. Plan of the use of resources and efficiency. The project approving organ shall analyze and evaluate the project resource development plan and measures for energy and water conservation from the perspectives of developing circular economy and the establishment of conservation society.
5. Land expropriation and household relocation plan. In order to protect public interests, the project which involves land expropriation and household relocation shall be examined in terms of rationality and feasibility.
6. Ecological environment impact. Based on the requirements of Scientific Outlook on Development, the project approving organ shall analyze the adverse impact of the project on ecological environment, and take effective measures to protect ecological environment. Meanwhile, attention shall be paid to the protection of historic cultural heritage, natural heritage, scenic spots and natural landscape.
7. Regional economic impact analysis. For the project with major regional economic impact, the project approving organ shall examine its impact, formulate countermeasures on coordinating the project with regional economic and social development and evaluate its impact on relevant economic policies.
8. Social impact analysis. The project approving organ shall evaluate the social feasibility of the project from the possible social impact, the mutual accommodation between the project and local social environment and social acceptance, and formulate countermeasures and advices on coordinating the project and local social relations, risk aversion and the smooth implementation of the project.
9. Economic effect analysis of resource allocation. The project approving organ shall pay attention to the analysis of economic externality, analyze the economic costs and gains of relevant social members, evaluate the resource allocation efficiency of project investment and maximize the public interest of the investment project.