Regulations for the Implementation of the Foreign Investment Law of the People's Republic of China has been issued

On 26 December 2019, the Regulations for the Implementation of the Foreign Investment Law of the People's Republic of China was issued by the State Council. It came into force on 1 January 2020. Key points include: - Five-year transitional period arrangement; - Allows Chinese natural persons to establish new foreign-funded enterprises with foreign investors directly; - Emphasis on the free remittance of the legal income of foreign investors and foreign employees; - Details the protection of intellectual property rights and trade secrets; - Defines the compensation standard for expropriation under special circumstances; - Equal treatment of domestic and foreign enterprises; - Clarifies fund raising means for foreign-funded enterprises.

• Type:

  • Entry and establishment (Ownership and control)
  • Treatment and operation (Non-discrimination, Capital transfer and FOREX)

• Industry:

  • Not industry specific

• Sources:

  • The State Council, 中华人民共和国国务院令, http://www.gov.cn/zhengce/content/2019-12/31/content_5465449.htm, 26 Dec 2019
  • Lexology, An overview of the key points of the Regulations for the Implementation of the Foreign Investment Law, https://www.lexology.com/library/detail.aspx?g=4d4bf0a4-a410-4244-874e-f6a084ce95f8, 22 Jan 2020