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A Sign of Forthcoming FDI Law Overhaul

  • China

    13-04-2015

    The Chinese Ministry of Commerce (‘MOFCOM’) circulated a first draft of a new legislative regime that will govern the way the Chinese Government deals with Foreign Direct Investment (‘FDI’). The intention behind this is to open up the Chinese market for foreign investors by introducing a regime which does not distinguish between national and foreign investments thus decreasing the barriers to entry for foreign investors. This is counterbalanced by heavier reporting obligations and corporate governance changes to existing entities. While the consultation period has now come to an end it only remains to be seen in what form the Chinese Government will in fact promulgate the law, and when.

     

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