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China Grants Overseas-Based Investors National-Level Protection

A new law guaranteeing overseas-based investors the same rights and entitlements as their mainland counterparts has been formally approved by the 13th National People’s Congress (NPC). Set to take effect from 1 January next year, the incoming legislation – The Foreign Investment Law of the People’s Republic of China – assures non-mainland investors of national level protection for all their committed funds, income and other interests, provided their projects do not fall within the remit of the statutory Negative List.

The new legislation supersedes the existing Law on Sino-Foreign Equity Joint Ventures, the Law on Foreign-Invested Enterprises and the Law on Sino-Foreign Contractual Joint Ventures, all of which will be repealed as of 1 January 2020. Any foreign-invested enterprise established in accordance with any of these three former legislative frameworks, however, may maintain its existing organisational format within 5 years. 

For further details (in Chinese), please access the following link:

Foreign Investment Law of the People’s Republic of China

Content provided by Picture: HKTDC Research
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