Draft Foreign Investment Law Undergoes Third-time Review and Will Introduce Pre-entry National Treatment Plus Negative List Regime

The Xinhua News Agency has recently been empowered to release an abstract of the Foreign Investment Law of the People's Republic of China (Draft) (the "Draft") which is currently being deliberated on the second session of the 13th National People's Congress ("NPC") and will be submitted to the NPC for voting on March 15, 2019.

Encompassing 41 articles, the Draft is divided into six chapters which are general provisions, investment promotion, investment protection, investment management, legal liabilities, and supplementary provisions, setting forth fundamental and definite provisions under the new legal system for foreign investment. Its major contents cover: 1. the determination of the scope of foreign investment; 2. the promotion of foreign investment; 3. the protection of foreign investment; and 4. the administration of foreign investment. According to the Draft, China will adopt the administrative regime of pre-entry national treatment plus negative list for foreign investment. Where there are more preferential provisions in relation to treatment for foreign investors' entry in those international treaties and conventions that China has concluded or acceded to, such provisions shall apply. Meanwhile, the Draft expressly states that, comments and advice shall be sought from foreign-invested enterprises in a proper manner during the formulation of laws, regulations and rules in relation to foreign investment.



(Source: http://www.npc.gov.cn/npc/xinwen/2019-03/09/content_2079173.htm)

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