The Foreign Investment Law Series is written by Mr. Xiaodong Dai (戴晓东), associate at King & Wood Mallesons Beijing Office.
China's Foreign Investment Law
On 31 Dec., China’s National Development and Reform Commission and the Ministry of Commerce jointly issued the “Special Administrative Measures (Negative List) for Foreign Investment Access to Hainan Free Trade Port (2020) ”.
Compared with the 2019 Edition, the 2020 Catalogue has increased 127 items and modified 88 ones, further expanding the scope of encouraged foreign investment.
PRC Foreign Investment Law makes it clear that the foreign indirect investment should also be put under regulation, but fails to provide a clear definition of and the criteria for determining indirect investment.
If you invest in China's Internet companies, what restrictions will you face?
Wish to invest in China's Internet companies? Understanding China's regulation on the value-added telecommunications services is the perfect starting point.
Existing foreign-funded enterprises can keep their original organizational structures within five years (transitional period) from 1 Jan. 2020. Here's how foreign investors should modify the constitutional documents of the invested enterprises.
Judges of China's Supreme Court introduced the Interpretation on Several Issues Concerning the Application of the PRC Foreign Investment Law (关于适用外商投资法若干问题的解释).
For foreign investment in education, China still maintains a cautious approach towards the initial entrance stage and sets different investment restrictions for different educational institutions.
The Foreign Investment Law sets aside the issue of VIE structures, but leaves a possibility for the VIE with a catch-all clause.