26:
183:, the country adopted its first law on equity joint ventures in 1979, and the laws on wholly foreign-owned enterprises and cooperative joint ventures were enacted in the 1980s. Over the past decades, they have provided legal safeguards for foreign firms and promoted foreign investment and cooperation in China. As China becomes one of the world's top recipients of FDI, with some 960,000 foreign-invested enterprises and over 2.1 trillion US dollars of accumulated FDI by the end of 2018, the legal framework for foreign investment needed to be updated in order for further reform and opening up.
247:
A foreign investor may freely transfer inward and outward its contributions, profits, capital gains, income from asset disposal, royalties of intellectual property rights, lawfully obtained compensation or indemnity, income from liquidation, and so on within the territory of China in CNY or a foreign
241:
The government is not to expropriate any investment made by foreign investors. Under special circumstances, the government may expropriate or requisition an investment made by foreign investors for public interests, in accordance with the law. Such expropriation or requisition shall be made pursuant
300:
Jake Parker, senior vice president at the U.S.-China
Business Council, said the Law still falls short of "specifying what kinds of trade secret disclosures will be prohibited, and clarifying which kinds of administrative departments the provisions on technology transfer may apply to." It is also
235:
All national policies on supporting the development of enterprises shall equally apply to foreign-funded enterprises in accordance with the law. The government establishes a service system for foreign investment, and provides foreign investors and foreign-funded enterprises with consultation and
119:
A law formulated on the basis of the
Constitution to further expand the scope of opening-up, promote foreign investment, protect the lawful rights and interests of foreign investment, standardize the regulation of foreign investment, make new ground in opening up on all fronts, and promote the
203:
It defines "foreign investment" as the investment activity directly or indirectly conducted by a foreign natural person, enterprise, or other organization, including establishing a foreign-funded enterprise in China; acquiring shares, equities, property shares, or any other similar rights and
170:
on March 15, 2019, and came into effect on
January 1, 2020. It replaces the Law of the People's Republic of China on Sino-Foreign Equity Joint Ventures, the Law of the People's Republic of China on Wholly Foreign-owned Enterprises, and the Law of the People's Republic of China on Sino-Foreign
289:
Joerg Wuttke, president of the
European Union Chamber of Commerce in China, said the Law puts a "strong emphasis on preventing Chinese entities from forcing foreign companies to transfer valuable technology" in order to do business in China, while improving protection of trade secrets.
283:, said the Law shows China's will and determination to follow through with reform and opening up in a new historical context, and that "it is a full testament to China's determination and confidence in opening wider to the outside world and promoting foreign investment in the new era."
195:
The
Foreign Investment Law calls for the gradual elimination of caps on foreign ownership in key Chinese industries, including oil and gas exploration, nuclear fuel production, and some parts of the finance sector.
186:
The unified
Foreign Investment Law, replacing the three existing laws, was adopted at the Second Session of the 13th National People's Congress on March 15, 2019, and came into effect on January 1, 2020.
204:
interests of a local enterprise; making investments to initiate a new project independently or jointly with any other investor; and making investment in any other way stipulated by laws or regulations.
297:, the Law's call for the phasing out of caps on foreign ownership in various key industries reduces the need for joint ventures in China and promotes direct acquisitions by foreign enterprises.
280:
261:
of foreign investors and foreign-funded enterprises, and encourages technology cooperation on the basis of free will and business rules. It bans forced technology transfers.
555:
286:
Vivian Jiang, vice chair of
Deloitte China, said the Law sends the signal of "greater transparency", and will "boost Chinese market's appeal to foreign capital."
214:
227:
315:
159:
301:"vague on how communication channels between government agencies and foreign entities will be managed, and how feedback will be incorporated."
490:
550:
545:
471:
427:
530:
91:
25:
325:
266:
The government establishes a safety review system for any foreign investment affecting, or having the possibility to affect,
254:
80:
535:
210:
167:
76:
33:
540:
320:
223:
236:
services in respect of laws and regulations, policies and measures, investment project information, and other aspects.
560:
525:
163:
130:
180:
520:
411:
376:
347:
65:
441:
433:
230:) are delegated with the major responsibility to promote, protect, and manage foreign investment.
242:
to statutory procedures, and fair and reasonable compensation will be given in a timely manner.
467:
423:
267:
415:
403:
310:
294:
514:
445:
491:"EU Chamber says China's new foreign investment law is "surprisingly accommodating""
258:
138:
44:
437:
459:
419:
408:
Accidental
Conflict: America, China, and the Clash of False Narratives
134:
377:"La Chine adopte la loi sur les investissements étrangers"
348:"Foreign Investment Law of the People's Republic of China"
53:
Foreign
Investment Law of the People's Republic of China
19:
Foreign
Investment Law of the People's Republic of China
464:
The New China Playbook: Beyond Socialism and Capitalism
209:
The government implements the management systems of
120:
healthy development of the socialist market economy.
124:
113:
105:
97:
87:
72:
61:
32:
18:
8:
228:National Development and Reform Commission
24:
199:The Law's key provisions are as follows:
222:The competent departments for commerce (
336:
50:
15:
556:Law of the People's Republic of China
398:
396:
316:Law of the People's Republic of China
166:in China. The law was adopted by the
160:law of the People's Republic of China
7:
485:
483:
371:
369:
367:
342:
340:
211:pre-establishment national treatment
14:
279:Wang Chen, vice chairman of the
92:13th National People's Congress
326:Intellectual property in China
81:Special Administrative Regions
1:
551:2020 establishments in China
546:2019 establishments in China
321:Ministry of Commerce (China)
255:intellectual property rights
253:The government protects the
171:Cooperative Joint Ventures.
577:
168:National People's Congress
77:People's Republic of China
34:National People's Congress
531:Foreign direct investment
293:In the view of economist
164:foreign direct investment
144:
131:Foreign direct investment
129:
118:
39:
23:
217:for foreign investment.
281:NPC Standing Committee
226:) and for investment (
156:Foreign Investment Law
66:Foreign Investment Law
412:Yale University Press
181:reform and opening up
79:but excludes China's
536:Chinese business law
466:. New York: Viking.
420:10.2307/j.ctv2z0vv2v
224:Ministry of Commerce
541:Investment in China
179:Soon after China's
73:Territorial extent
497:. 21 October 2019
473:978-1-9848-7828-1
429:978-0-300-26901-7
268:national security
152:
151:
568:
561:2019 legislation
526:Economy of China
506:
505:
503:
502:
487:
478:
477:
456:
450:
449:
400:
391:
390:
388:
387:
373:
362:
361:
359:
358:
344:
311:Economy of China
28:
16:
576:
575:
571:
570:
569:
567:
566:
565:
511:
510:
509:
500:
498:
489:
488:
481:
474:
458:
457:
453:
430:
402:
401:
394:
385:
383:
375:
374:
365:
356:
354:
346:
345:
338:
334:
307:
277:
193:
177:
109:January 1, 2020
88:Enacted by
57:
54:
49:
48:
12:
11:
5:
574:
572:
564:
563:
558:
553:
548:
543:
538:
533:
528:
523:
513:
512:
508:
507:
479:
472:
451:
428:
404:Roach, Stephen
392:
363:
335:
333:
330:
329:
328:
323:
318:
313:
306:
303:
276:
273:
272:
271:
263:
262:
250:
249:
244:
243:
238:
237:
232:
231:
219:
218:
206:
205:
192:
191:Key provisions
189:
176:
173:
150:
149:
142:
141:
127:
126:
122:
121:
116:
115:
111:
110:
107:
103:
102:
101:March 15, 2019
99:
95:
94:
89:
85:
84:
74:
70:
69:
63:
59:
58:
56:
55:
52:
42:
41:
40:
37:
36:
30:
29:
21:
20:
13:
10:
9:
6:
4:
3:
2:
573:
562:
559:
557:
554:
552:
549:
547:
544:
542:
539:
537:
534:
532:
529:
527:
524:
522:
521:Laws of China
519:
518:
516:
496:
492:
486:
484:
480:
475:
469:
465:
461:
455:
452:
447:
443:
439:
435:
431:
425:
421:
417:
413:
409:
405:
399:
397:
393:
382:
381:mofcom.gov.cn
378:
372:
370:
368:
364:
353:
352:mofcom.gov.cn
349:
343:
341:
337:
331:
327:
324:
322:
319:
317:
314:
312:
309:
308:
304:
302:
298:
296:
295:Stephen Roach
291:
287:
284:
282:
274:
269:
265:
264:
260:
259:trade secrets
256:
252:
251:
246:
245:
240:
239:
234:
233:
229:
225:
221:
220:
216:
215:negative list
212:
208:
207:
202:
201:
200:
197:
190:
188:
184:
182:
174:
172:
169:
165:
161:
157:
147:
143:
140:
136:
132:
128:
123:
117:
112:
108:
104:
100:
96:
93:
90:
86:
82:
78:
75:
71:
67:
64:
60:
51:
47:
46:
38:
35:
31:
27:
22:
17:
499:. Retrieved
494:
463:
454:
438:j.ctv2z0vv2v
407:
384:. Retrieved
380:
355:. Retrieved
351:
299:
292:
288:
285:
278:
198:
194:
185:
178:
155:
153:
145:
43:
139:Chinese law
515:Categories
501:2019-11-27
386:2019-11-27
357:2019-11-27
332:References
162:governing
45:Long title
460:Jin, Keyu
446:252800309
248:currency.
106:Commenced
68:(English)
462:(2023).
406:(2022).
305:See also
275:Comments
148:In force
125:Keywords
62:Citation
175:History
146:Status:
114:Summary
98:Enacted
470:
444:
436:
426:
442:S2CID
434:JSTOR
158:is a
135:Trade
495:CNBC
468:ISBN
424:ISBN
257:and
213:and
154:The
416:doi
517::
493:.
482:^
440:.
432:.
422:.
414:.
410:.
395:^
379:.
366:^
350:.
339:^
137:,
133:,
504:.
476:.
448:.
418::
389:.
360:.
270:.
83:.
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
