Foreign Investment Law

A draft law on foreign investment has been submitted to a bimonthly session of the National People’s Congress (NPC) Standing Committee, which opened on December 23, 2018.

Once adopted, the unified law will replace three existing laws, namely the laws on Chinese-foreign equity joint ventures, non-equity joint ventures and wholly foreignowned enterprises.

The current laws can hardly keep up with the changing economic situation, as China strives to build new institutions and open its economy. But the new law will guarantee China’s opening up in the next phase and more effective utilization