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New Draft Foreign Investment Law Signals Major Overhaul in China
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Trade Publication Article
New Draft Foreign Investment Law Signals Major Overhaul in China
2015
Overview
The draft law proposes five major changes: * replace foreign-invested company laws * broaden definition of foreign investment * replace pre-approval with annual reports * require pre-approval only for negative list * implement a national security review process Repeal of three foreign-invested company laws When the new Foreign Investment Law comes into effect, it will repeal the Sino-foreign Equity Joint Venture Law, the Wholly Foreign-owned Enterprise Law, and the Sino-foreign Contractual Joint Venture Law. The only exception is where a foreign party intends to invest in one of the restricted industries on the negative list - likely to be based on the Catalogue of Restricted and Prohibited Industries for Foreign Investment - or where the investment amount exceeds the level set by the State Council.
Publisher
Questex, LLC
Subject
