China has been a magnet for foreign direct investment (FDI) in recent years, however the investment environment has become somewhat more complex as China’s economy has developed and attitudes to foreign investment have changed.

Continuing our series on doing business in China, this instalment discusses the challenges and risks involved in the transfer of technologies from foreign companies to Chinese parties.

With more and more enterprises entering foreign markets, the risk that their products infringe upon already registered patents will also increase.

China’s central bank has taken further steps to liberalise the country’s tightly controlled capital outflow, allowing some Chinese domestic companies to use domestic renminbi for overseas direct investment, and further demonstrating the Chinese government’s firm commitment to steadily progress its renminbi internationalisation agenda.

It has been four years since China became a member of the World Trade Organisation. During that time it has implemented a number of changes to its formerly command-based economy to open up its markets to foreign investment and competition.

On August 8, 2006, the Ministry of Commerce ("MOFCOM"), joined by the State-owned Assets Supervision and Administration Commission of the State Council, State Administration of Taxation, State Administration for Industry and Commerce, China Securities Regulatory Commission ("CSRC") and State Administration of Foreign Exchange, amended and released the Provisions for Foreign Investors to Merge and Acquire Domestic Enterprises (the "M&A Rules").

As China's economy enters a new phase, multinational companies (MNCs) are not only encountering many opportunities, but also a new set of challenges. How do MNCs perceive their growth prospects amid this change?

There are a number of business sectors in China such as telecommunications services, online commerce and auction in which direct foreign investment is restricted. Limits are placed on the percentage amount of foreign ownership of companies in these sectors.

In response to mounting calls for liberalization of its lucrative securities industry to foreign investors, the China Securities Regulatory Commission ("CSRC") revised the Rules on Establishment of Securities Companies with Foreign Equity Participation on 28 December 2007 (the "Revised Rules") and issued the Provisions for the Establishment of subsidiaries of Securities Companies (Trial Implementation).

The State Administration of Foreign Exchange of China ("SAFE") has issued new rules, effective as of November 1, 2005, on foreign exchange registration concerning equity financing transactions through offshore "special purpose companies" ("SPCs") and their onshore investment in China.

On 29 March 2010, the Shanghai No. 1 Intermediate People’s Court (the Court) finally handed down its sentence in the most long awaited and controversial case involving Chinese or Chinese-born employees of foreign companies in recent memory. Stern Hu, the Chinese-born Australian national, and the other three Chinese employees of Rio Tinto (the Employees), were convicted of stealing commercial secrets and taking bribes, and were handed prison terms ranging from 7 to 14 years.

The recent CPC plenary session reviewed and approved the Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese...

India is now the fourth largest economy in the world and the second fastest growing economy in the world. With consistent 7% growth during the past few years it is chasing and catching the Chinese Dragon, which is trying to depress a growth rate of 9+% to avoid overheating. Both economies desire and require foreign investment.

Foreign companies investing in China, particularly the western provinces, may still be able to benefit from competitive tax rates despite recent changes to tax laws, says Henry Tan of Nexia TS.

中国の国産シールド・TBMメインベアリングリダクションギアの工業試験成果が10日、発表された。

Recent events foreshadow the opportunities and challenges that Chinese companies and their investors will face in both the U.S. and People’s Republic of China as they seek to access the public capital markets.

Attention during China's annual lianghui focused on adoption of the constitutional amendment to eliminate term limits on the offices of President and Vice President, allowing President Xi Jinping...

A Citibank led consortium won the bid for 85.6% of Guangdong Development Bank in December 2006 for RMB24.27 billion, ending a long battle with rivals French Bank Societe Generale and China’s second largest insurer Ping An Group. The deal coincides with the changes to rules governing foreign banks in China.

In the knowledge economy, intellectual property has become a core asset for enterprises, with service inventions directly linked to innovation vitality and competitive advantage. However, unclear ownership of employee inventions can lead to disputes, loss of core technologies, and obstacles to corporate growth.

电子执照和电子印章的广泛应用将进一步降低上海企业的设立成本。然而，科技在为企业带来便利的同时，依旧存在诸多的局限性。