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ARTICLE · 15 OCTOBER 2016

China Issues Several Implementing Rules to Reform Its Foreign Investment Administrative System

On 3 September 2016, China's Standing Committee of the National People's Congress approved the Resolution of Amending Four Laws, including the Law of the People's Republic of China on Wholly Foreign-Owned Enterprises, which provides that the establishment and changes of the foreign-invested enterprises ("FIE") ..

United StatesGovernment, Public Sector

In brief, the current reform of China's foreign investment administrative system is significantly good news to foreign investors, especially to those who make investment outside the Negative List.

On 3 September 2016, China's Standing Committee of the National People's Congress approved the Resolution of Amending Four Laws, including the Law of the People's Republic of China on Wholly Foreign-Owned Enterprises, which provides that the establishment and changes of the foreign-invested enterprises ("FIE") that do not fall under special market entry administrative measures shall be subject to record-filing administration, rather than approval administration. On 8 October 2016, Ministry of Commerce and National Development and Reform Commission jointly issued the No. 22 Announcement ("No. 22 Announcement") further clarifying that the scope of special market entry administrative measures for FIEs shall be defined in accordance with the restricted sectors, the prohibited

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