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ARTICLE · 06 FEBRUARY 2019

Positive Developments Contained In China's New Draft Foreign Investment Law

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China released a new draft Foreign Investment Law ("Draft Law") soliciting public comments. The Draft Law further liberalises the Chinese economy to foreign investments and primarily provides broad

ChinaGovernment, Public Sector
Gowlings TV
Gowlings TV
Le Rong
Le Rong
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China released a new draft Foreign Investment Law ("Draft Law") soliciting public comments. The Draft Law further liberalises the Chinese economy to foreign investments and primarily provides broad principles governing foreign investment activities in China. The successful implementation of the Draft Law would depend in part on subsequent supporting regulations, smoothly harmonising existing rules and adjusting certain practices. This alert highlights some of the positive developments contained in the Draft Law.

Salient elements of the Draft Law

Abolishing foreign invested companies as a formal investment vehicle

The Draft Law would be a unifying law enshrining the principle rules governing foreign investments in China through repealing three existing legislations and their implementation rules governing companies wholly owned, and joint ventures invested, by foreign investors. This means, among others:

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