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ARTICLE · 17 MAY 2016

China's Draft Foreign Investment Law

Dentons
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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.

ChinaGovernment, Public Sector
Todd Liao
Todd Liao
Frank Niu
Frank Niu
Sarah Zeng
Sarah Zeng
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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.

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