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China Insight - Corporate

Draft PRC Foreign Investment Law proposes substantial changes to the foreign investment regime in China


Currently, foreign invested enterprises (“FIEs”), i.e. equity joint ventures („EJV“), cooperative joint ventures („CJV“) and wholly foreign-owned enterprises („WFOEs“) in the People’s Republic of China (“PRC”) are subject to special laws and regulations in addition to the PRC Company Law. The most prominent are the PRC Law on Sino-Foreign Equity Joint Venture Enterprises, the PRC Law on Sino-Foreign Corporative Joint Venture Enterprises and the PRC Law on Wholly Foreign-owned Enterprises (“FIE laws”) and their respective implementing regulations.

The establishment and the organizational structure of FIEs are different from those of domestic Chinese companies. For example, while domestic Chinese companies only have to be registered with the competent Administration for Industry and Commerce ("AIC"), FIEs additionally are subject to prior approval by the competent Authority of Commerce.

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China Insight - Corporate
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Portrait of Ulrike Glueck
Dr. Ulrike Glueck
Managing Partner
Portrait of Michael Munzinger
Michael Munzinger, LL.M.