×

The New Foreign Investment Law in China

Published: July 2019

China has faced a deluge of international criticism over its treatment of foreign businesses and the perceived slow pace of market opening over the past year. Looking to restore the confidence of foreign investors, China passed a new Foreign Investment Law in March this year. The law establishes a new framework to govern foreign investment in China and addresses a number of common concerns among overseas businesses. Critics, however, have questioned the extent to which the law addresses these issues in practice, pointing to the law’s at times broad and vague language. To make sense of the changes, this issue of China Briefing magazine offers a comprehensive analysis of China’s new Foreign Investment Law.

Download this e-Publication

  • Share

In this Issue:

  •  The Context for the New FIL
  • What to Watch Before the FIL is Enacted
  • How the FIL Affects New Investments, WFOEs, CJVs, and EJVs

Over the past year, China has faced a deluge of international criticism over its treatment of foreign businesses and the perceived slow pace of market opening. This criticism manifested itself most visibly when the US slapped tariffs on billions of dollars’ worth of Chinese goods, sparking a trade war aimed at combating China’s alleged unfair economic practices.

While the US has been the most vocal and aggressive in criticizing China’s economic policies, governments, business leaders, and business groups from Japan to the European Union have expressed similar grievances.

Looking to restore the confidence of foreign investors, China passed a new Foreign Investment Law in March this year. The law establishes a new framework to govern foreign investment in China and addresses a number of common concerns among overseas businesses. Critics, however, have questioned the extent to which the law addresses these issues in practice, pointing to the law’s at times broad and vague language.

To make sense of the changes, this issue of China Briefing magazine offers a comprehensive analysis of China’s new Foreign Investment Law.

We begin by introducing the main features of the law, including an overview of the key changes and what is still missing. Next, we provide a deep-dive analysis of important provisions in the law and how they should be interpreted. Finally, we evaluate what the impacts of the Foreign Investment Law are for foreign businesses operating in China and what tangible steps they should take in response.

This magazine is based on more than 25 years of experience helping foreign investors navigate the Chinese market. We hope we can be of assistance in helping your business adapt to China’s new foreign investment landscape.

Back to top