Facilitating Foreign Direct Investment: The Latest Developments And Their Implications

Upon its promulgation, there are discrepancies between China’s new Company Law and the existing foreign investment legal regime. There also lies uncertainty over the application of the new Company Law to foreign invested enterprises (FIEs). On April 24, 2006, State Administration for Industry and Commerce, together with Ministry of Commerce, General Administration of Customs, and State Administration of Foreign Exchanges, issued Suggestions on Implementation of Several Issues regarding Applicable Law of Examination, Approval, Registration and Administration for Foreign invested Enterprises (Suggestions). These suggestions make the applicability of the new Company Law and other recently issued laws and regulations to FIEs more clear. A new FIE legal regime is emerging together with the previously issued Regulations for the Administration of Company Registration of the People’s Republic of China (Regulations) and Provisions for the Administration of Registration of the Registered