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New Regulatory Regime for Foreign Investment in China

China Insight - Corporate

On 3 September 2016, the Standing Committee of the PRC National People's Congress adopted a decision to revise the three laws governing foreign invested enterprises in China, i.e. the PRC Law on Wholly Foreign-owned Enterprises, the PRC Law on Sino-Foreign Equity Joint Ventures and the PRC Law on Sino-Foreign Cooperative Joint Ventures (collectively “FIE Laws”). The following clause was newly added into the FIE laws respectively: “The approval and examination procedures for foreign invested enterprises (“FIEs”) shall be replaced by recordal procedures if such FIEs are not listed in the Negative List. The Negative List is to be published by the State Council”. The amended FIE Laws will take effect on 1 October 2016. 

On the same day, the PRC Ministry of Commerce published the Provisional Measures on Management of the Establishment and Changes of Foreign Invested Enterprises (Draft) (“Draft Provisional Measures”) for public comments until 22 September 2016. The Draft Measures stipulate the rules for recordal procedures for establishment and changes of those FIEs whose industries are not included in the Negative List.

We summarise the key content of the Draft Provisional Measures. Please click the Source Link below to read the details. 

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Picture of Ulrike Glueck
Dr. Ulrike Glueck
Managing Partner
Cyndi Cao, LL.M.