China Adopted the Foreign Investment Law
China passed the "Foreign Investment Law of the People’s Republic of China" at the close of the annual session of the National People's Congress (NPC, the country’s top legislature) on 15 March 2019. The new law will take effect on 1 January 2020, and the three laws, which have been dealing with foreign investment will be abolished at the same time.
The new law aims to improve the transparency of foreign investment policies and ensure domestic and foreign enterprises are subject to a unified set of rules and compete on a level playing field, according to an explanatory document.
The law includes three remarkable highlights: 1) Pre-establishment national treatment; 2) protection of intellectual property rights of foreign investors; and 3) improved investment protection compared to the previous laws.
"China will draft a series of laws and regulations to ensure smooth implementation of the Foreign Investment Law", said Premier Li Keqiang at the press conference after the conclusion of the NPC session.
Type: Entry and establishment (Ownership and control, Access to land, Approval and admission), Treatment and operation (Non-discrimination, Nationalizations and expropriations, Capital transfer and FOREX, Dispute settlement, Operational conditions ), Promotion and facilitation (Investment facilitation , Investment incentives, Special economic zones)
Industry: Not industry specific
- State council, China adopts foreign investment law, Mar 15, 2019
- The National People's Congress (NPC) of the People's Republic of China, Foreign Investment Law of the People's Republic of China (2019), Mar 15, 2019