Deloitte in the news
Deloitte and Qin Li comment's on China’s Foreign Investment Law
Hong Kong Economic Journal published an article on "Dawning of a New Era of Foreign Investment Law of the People's Republic of China" authored by our Vice Chairman, Patrick Yip and Qin Li's Counsel Lily Ji.
On 15th March 2019, the 2nd session of the Thirteenth National People's Congress passed The Foreign Investment Law of the People's Republic of China (Foreign Investment Law) which will become effective 1st January 2020. The new Law will replace the PRC Law on Sino-foreign Equity Joint Ventures, the PRC Law on Sino-foreign Co-operative Joint Ventures and the PRC Law on Wholly Foreign-Owned Enterprises (the so-called 'Three major legislations' governing the foreign investments in China) and will become the basic law regulating foreign investments in China.
There are four major highlights of the Foreign Investment Law: (i) the new law, unlike prior laws, will apply also to mergers and acquisitions of Chinese targets by foreign investors in addition to direct greenfield investments by foreign investors in China; (ii) introduction of pre-entry national treatment and a negative list system that would generally be considered favorable to foreign investments; (iii) equal treatment of both domestic and foreign investments including participation in the development of industry policies and standards; and (iv) enhanced protection on intellectual property rights and trade secrets. The authors believe that the Foreign Investment Law has established a more open and welcoming foreign investment environment in China that should be good news to foreign investors.
If you would like to read more about this article, please click to enlarge the news below (Chinese version only).