By Xu Ping Mark Schaub and Jennifer Yao King & Wood Mallesons’ M&A Group
On 19 January 2015, the Ministry of Commerce of the PRC (“MOFCOM”) published a discussion draft of the proposed new Foreign Investment Law (“Draft FIL”) on its official website for public comments. As part of a trend of transforming the role of government in the economy and simplifying red tape, this new legislation will revamp how China interacts with foreign investment which has been long-awaited.
China is not the same country when the Sino-foreign Equity Joint Venture Enterprise Law was promulgated in 1979. In addition to its rapid growth and developing economy, there has been in recent years strong and sustained growth in outbound investments by Chinese enterprises. This has led to China changing from a net capital inflow country to a net capital outflow country in 2014. No doubt China’s perspectives and strategies on both inbound and outbound investment regime have reshaped dramatically reflecting the changing economic landscape.
Continue Reading A New Era for the PRC Foreign Investment Regime —— An Introduction to the Discussion Draft Foreign Investment Law of PRC