The New Foreign Investment Law in China - Preview

China Briefing Issue 185 June 2 Introduction ALBERTO VETTORETTI Managing Partner Dezan Shira & Associates 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 criticismmanifested 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 themain features of the law, including an overviewof 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 onmore than 25 years of experience helping foreign investors navigate the Chinesemarket.We hope we can be of assistance in helping your business adapt to China’s new foreign investment landscape. B est regards, A lberto Vettoretti Credits Publisher / Chris Devonshire-Ellis Managing Editor / Adam Pitman Editor / Qian Zhou Contributor /Fanny Zhang Design / Thu Ha, Tue Nguyen Reference China Briefing and related titles are produced by Asia Briefing Ltd., a wholly owned subsidiary of Dezan Shira Group. Content is provided by Dezan Shira & Associates. No liability may be accepted for any of the contents of this publication. Readers are strongly advised to seek professional advice when actively looking to implement suggestions made within this publication. For queries regarding the content of this magazine, please contact: editor@asiabriefing.com All materials and contents © 2019 Asia Briefing Ltd. Asia Briefing Ltd. Unit 507, 5/F, Chinachem Golden Plaza, 77 Mody Road, Tsim Sha Tsui East Kowloon, Hong Kong. www.asiabriefing.com www.dezshira.com www.aseanbriefing.com www.india-briefing.com www.indonesiabriefing.com www.vietnam-briefing.com www.china-briefing.com