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ARTICLE · 24 FEBRUARY 2015

Merging Parallel Lines: China’s Draft Foreign Investment Law

Troutman Pepper Locke LLP
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When it becomes law, the Foreign Investment Law could be the most significant milestone in China’s transition from a planned to a market economy.

ChinaGovernment, Public Sector
Edward Epstein
Edward Epstein
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When it becomes law, the Foreign Investment Law could be the most significant milestone in China's transition from a planned to a market economy. And it could also be another strait-jacket on foreign investment.

"The Foreign Investment Law represents a major step in merging the legal and regulatory systems for the foreign and Chinese-owned economies and unifying their status" but "buried in the fine print are some provisions that should be of great concern to those who expect the new law to open up key sectors of China's economy to foreign investment."

This essay will examine the history behind the drafting of the Foreign Investment Law and why it may be of marginal benefit in further opening China's market to foreign investment.

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