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ARTICLE · 14 AUGUST 2019

China's New Foreign Investment Law

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ChinaGovernment, Public Sector
Edward Guo
Edward Guo
Jack Yu
Jack Yu
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CHINA'S NEW FOREIGN INVESTMENT LAW

On March 15, 2019, China announced its new Foreign Investment Law (the "FIL"), which will come into force on January 1, 2020. The FIL will fundamentally change the existing foreign investment legal regime in China currently ruled by the Sino-Foreign Equity Joint Ventures Law, the Sino-Foreign Contractual Joint Ventures Law, the Wholly Foreign Owned Enterprises Law, and relevant implementing regulations (collectively, the "Existing Investment Laws").

A. Overview of Existing Investment Laws

The Existing Investment Laws have been implemented since 1979 and have gradually evolved into a complicated system, where foreign investments are strictly required to be registered on a record filing system through on-line submission of prescribed information. In addition, certain categories of foreign investments are subject to special administrative measures, beyond a mere filing requirement. Such categories of investments are referred to as

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