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ARTICLE · 11 MARCH 2015

PRC Foreign Investment Draft Law: What You Should Know

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On January 19, 2015, China's foreign investment regulatory authority Ministry of Commerce ("MOFCOM") released a draft of new Foreign Investment Law ("Draft Law")...

ChinaInternational Law
Jiamu Sun
Jiamu Sun
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On January 19, 2015, China's foreign investment regulatory authority Ministry of Commerce ("MOFCOM") released a draft of new Foreign Investment Law ("Draft Law")  (See blog article Comparison Chart re JV Law and Foreign Investment Law Draft for Comments dated February 10, 2015).  This Draft Law is expected to come into force in the next couple of months overhauling the 25-year-old regulatory framework of inbound foreign investment in China (See Unofficial English Translation of the Draft Law by AmCham China).

Case-by-Case Approval is Abandoned

Under the existing legal framework governing foreign investment, each project or entity is subject to approval by MOFCOM or its local counterparts regardless of the investment sector.  In the Draft Law, only those foreign investment projects that fall under the negative list are subject to the governmental approval requirement.1 For those projects or entities that are not on the negative list, foreign investors are

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