ANNOUNCEMENT 15 Mar 2019
March 15th, 2019 - The Chinese government ratified a new law governing the rules for foreign investments in the country.
NUMBER OF INTERVENTIONS
PRC National People's Congress, March 15th, 2019. (中华人民共和国外商投资法)
Ibid., December 2018. 'Establishment of the Foreign Investment Law' (外商投资法立法)
On March 15th, 2019, the Chinese National People's Congress (NPC) rubber-stamped the ratification of a new law (hereafter, the 'New Law') governing the rules surrounding foreign investments in the country.
The New Law abolishes three old ones established over 20 years previously. It is difficult to summarise what has changed, as a lot of the text in the New Law is vague in nature. In the time until it comes into effect (January 1st 2020), it is up to the Chinese State Council to draw up more specific policies to act on the provisions described in the New Law.
Key points included in the New Law which can be seen as liberalising are as follows:
There is also repeated assurance on the Chinese government's commitment to 'opening up' the economy.
The New Law was fast-tracked into approval, which many take to be in view of improving China's negotiating position in the ongoing China-US trade talks.
This intervention is classified as horizontal due to a lack of specific sectoral scope.
The 'New Foreign Investment Law' (hereafter, the 'New Law'), rubber-stamped into effect by the Chinese National People's Congress on March 15th, 2019, also contained some provisions which were of questionable value from the perspective of foreign investors, specifically: