China Seeks Comments on Revisions to Foreign Investment Laws

December 26, 2013 Posted by China Briefing Reading Time: 3 minutes

Dec. 26 – China’s Ministry of Commerce (MOFCOM) is mulling over revising the country’s foreign investment laws and is currently soliciting comments for the following three laws:

The Law of the People’s Republic of China on Wholly Foreign-Owned Enterprises (promulgated on April 12, 1986, last amended on October 31, 2000);
The Law of the People’s Republic of China on Sino-Foreign Equity Joint Ventures (promulgated on July 1, 1979, last amended on March 15, 2001); and
The Law of the People’s Republic of China on Sino-Foreign Cooperative Joint Ventures (promulgated on April 13, 1988, last amended on October 31, 2000).

According to the MOFCOM announcement, amendments to these three laws have already been included in the legislative plan of the National People’s Congress and all comments should be sent to investmentlaw@mofcom.gov.cn. However, the announcement has not yet specified a deadline for submitting comments.

Earlier this year, China’s State Council adjusted and suspended the following 11 administrative examination and approval items regulated under the above-mentioned laws in the Shanghai Free Trade Zone:

Item No. 1: Examination and approval for the establishment of WFOEs
Item No. 2: Examination and approval for division and merger of WFOEs
Item No. 3: Examination and approval for the extension of the operating period of WFOEs
Item No. 4: Examination and approval for the establishment of Sino-foreign equity joint ventures
Item No. 5: Examination and approval for the extension of the operating period of Sino-foreign equity joint ventures
Item No. 6: Examination and approval for dissolution of Sino-foreign equity joint ventures
Item No. 7: Examination and approval for establishment of Sino-foreign cooperative joint ventures
Item No. 8: Examination and approval of major amendments to the agreements, contracts and articles of association of Sino-foreign cooperative joint ventures
Item No. 9: Examination and approval of assignment of rights and liabilities by Sino-foreign cooperative joint ventures
Item No. 10: Examination and approval for entrusting other parties with the operation and management of Sino-foreign cooperative joint ventures
Item No. 11: Examination and approval for the extension of the cooperation term of Sino-foreign cooperative joint ventures

MOFCOM will summarize the experience gained from the Shanghai Free Trade Zone and start drafting relevant regulations and laws to provide a more favorable environment for foreign investment.

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