On March 15, 2019, the National People’s Congress passed the Foreign Investment Law of the People’s Republic of China (the “New FIL”) after several rounds of public consultation. This 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 legislations 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”).
Reed Smith lawyers discussed both internal and external factors that contribute greatly to the formulation, approval, and promulgation of the New FIL on this article, as well as some significant changes in future foreign investment transactions, and examples of certain efforts made so far under the framework of the New FIL in different regions and industries.
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Client Alert 2019-268