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On 25 August 2017 the Supreme People's Court of the People's Republic of China promulgated the Provisions of the Supreme People's Court on Several Issues Relating to Application of the PRC Company Law (IV) .

The implementation of China's Foreign Investment Law has fundamentally transformed the legal landscape for foreign-invested enterprises, creating new challenges in corporate restructuring and shareholder disputes. Two critical issues have emerged: determining shareholder status for Chinese partners whose equity was historically registered as zero, and navigating the shift from approval-based to filing-based requirements for equity transfers.