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ARTICLE · 14 DECEMBER 2015

China Changes Regulations For "Foreign-Invested Enterprises"

De Brauw Blackstone Westbroek
De Brauw Blackstone Westbroek
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De Brauw Blackstone Westbroek

De Brauw Blackstone Westbroek

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The Chinese Ministry of Commerce issued a decree introducing substantial changes to the current Chinese foreign investment regime on 28 October 2015.

ChinaGovernment, Public Sector
Gaby Smeenk
Gaby Smeenk
Yi Duan
Yi Duan
Amanda Guo
Amanda Guo
Carel Van Swaay
Carel Van Swaay
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The Chinese Ministry of Commerce issued a decree introducing substantial changes to the current Chinese foreign investment regime on 28 October 2015. The decree primarily focuses on "foreign-invested enterprises" and includes the lifting of certain registered capital requirements and investment scale limitations. As a consequence, foreign investors now enjoy greater flexibility in structuring capitalisations and equity investments in China. Companies should check how the changes affect their business in China. We will of course continue to update you on this subject.

The new decree is primarily based on China's "Company Law" and amends 29 administrative rules and normative documents concerning registered capital requirements, capital contribution installments, and Chinese holding company structures, among other things.

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