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ARTICLE · 20 SEPTEMBER 2010

China's Supreme People's Court Issues Rules on Foreign Investment Disputes

Jones Day
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On May 17, 2010, the Supreme People's Court of the People's Republic of China ("SPC") passed the "Provisions of the Supreme People's Court on Several Issues Concerning the Trial of Disputes Involving Foreign-Invested Enterprises" (the "FIE Dispute Rules"), which were issued and came into force on August 16, 2010.

ChinaLitigation, Mediation & Arbitration
Victor Chang
Victor Chang
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On May 17, 2010, the Supreme People's Court of the People's Republic of China ("SPC") passed the "Provisions of the Supreme People's Court on Several Issues Concerning the Trial of Disputes Involving Foreign-Invested Enterprises" (the "FIE Dispute Rules"), which were issued and came into force on August 16, 2010.

The release of the FIE Dispute Rules was driven by two major factors. First, the laws and regulations governing foreign-invested enterprises ("FIE"), such as the Law on Chinese-Foreign Contractual Joint Ventures, the Law on Chinese-Foreign Equity Joint Ventures, and the Law on Wholly Foreign-Owned Enterprises, cannot adequately deal with many of the issues arising out of China's rapidly developing economy.

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