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On March 15, 2019, the National People’s Congress passed the Foreign Investment Law of the People’s Republic of China (the Foreign Investment Law) after several rounds of public consultation. The new law, which will come into effect on January 1, 2020, constitutes a fundamental framework for foreign investment in China, covering market access, promotion, protection, and administration, and, as from its effective date, will supersede existing legislation governing foreign investment, i.e., the Sino-Foreign Joint-Venture Enterprise Law, Sino-Foreign Cooperative Enterprise Law, and Foreign-Invested Enterprise Law (together, the FIE Laws).

Autores: Amy Yin Catherine Jing

The Foreign Investment Law comprises six chapters, made up of 42 articles that cover general provisions, investment promotion, investment protection, investment administration, legal liability, and supplementary provisions. It establishes the following administration systems and incentive measures for foreign investment:

(1) National treatment and negative list administration systems

During the investment entry period, foreign investors (including natural persons, business entities, and other organizations from a foreign country) and their investments in sectors that are not on the negative list (which is an official list of specific sectors that are subject to special administrative measures on foreign investment entry) are accorded treatment that is no less favorable than that accorded to domestic investors and their investments.