The Proposed New Regulatory Regime for Foreign Investments
On January 19, 2015, the Ministry of Commerce (MOFCOM) of the
People's Republic of China (PRC) published a draft law called
the Foreign Investment Law of the PRC and began to solicit public
comments thereon. MOFCOM also published a document explaining its
legislative intent and key provisions.
Currently, there are three key legislations governing
foreign-invested enterprises (FIEs): the Sino-Foreign Equity Joint
Venture Law (EJV Law), the Sino-Foreign Contractual Joint Venture
Law (CJV Law) and the Wholly Foreign-Owned Enterprise Law (WFOE
Law). These laws, as well as their amendments and implementing
rules and regulations,1 together form a
distinct body of law for foreign investors in China. Once the draft
law becomes effective through legislative process, the EJV Law, the
CJV Law and the WFOE Law will be abolished.
