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ARTICLE · 13 MAY 2015

Revolutionizing foreign investment in China

This law will simplify procedures for foreign investors in China, and lift some of the remaining investment restrictions.

ChinaGovernment, Public Sector

Since the early 1990s, welcoming foreign investment has been one of the cornerstones for China's economic development, while at the same time foreign investors have continued to be subjected to stricter rules and procedures than their domestic counterparts. This is about to change with the new PRC Foreign Investment Law, which will simplify procedures for foreign investors to establish in China, and lift some of the remaining restrictions to foreign investment in specific industries.

The draft PRC Investment Law was published on 19 January 2015 for public comment, and is expected to be issued this year for implementation in early 2016 [I read everywhere timing is uncertain and implementation is not expected before late 2016, and possibly later]. The current draft will likely be subject to some further revisions, but some of the key principals are expected to remain:

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