Foreign Investment Law of the People's Republic of China

Foreign Investment Law of the People's Republic of China Order of the President of the People's Republic of China (No. 26) The Foreign Investment Law of the People's Republic of China, as adopted at the 2nd Session of the Thirteenth National People's Congress of the People's Republic of China on March 15, 2019, is hereby issued, and shall come into force on January 1, 2020. Xi Jinping, President of the People's Republic of China March 15, 2019 Foreign Investment Law of the People's Republic of China (Adopted at the 2nd Session of the Thirteenth National People's Congress of the People's Republic of China on March 15, 2019) Table of Contents Chapter I General Provisions Chapter II Investment Promotion Chapter III Investment Protection Chapter IV Investment Administration Chapter V Legal Liability Chapter VI Supplemental Provisions Chapter I General Provisions Article 1 For the purposes of further expanding the country's opening up, vigorously boosting foreign investment, protecting the lawful rights and interests of foreign investors, regulating the administration of foreign investment, propelling the formation of a new pattern of extensively opening up, and promoting the sound development of the socialist market economy, this Law is enacted in accordance with the Constitution . Article 2 Foreign investment in the territory of the People's Republic of China (hereinafter referred to as “within China”) shall be governed by this Law. For the purposes of this Law, “foreign investment” means the investing activities within China directly or indirectly conducted by foreign natural persons, enterprises, and other organizations (hereinafter referred to as “foreign investors”), including the following circumstances: (1) A foreign investor forms a foreign-funded enterprise within China alone or jointly with any other investor. (2) A foreign investor acquires any shares, equities, portion of property, or other similar interest in an enterprise within China. (3) A foreign investor invests in any new construction project within China alone or jointly with any other investor. (4) Investment in any other manner as specified by a law or administrative regulation or the State Council. For the purposes of this Law, “foreign-funded enterprise” means an enterprise formed and registered within China under the laws of China in which all or part of investment is made by a foreign investor. Article 3 The state is adamantly committed to the fundamental national policy of opening up, and encourages foreign investors to invest within China according to the law. The state implements high-level investment liberalization and facilitation policies, establishes and improves the foreign investment promotion mechanisms, and builds a stable, transparent, and foreseeable investment environment with a level playing field. Article 4 The state applies the administrative system of pre-establishment national treatment plus negative list to foreign investment. “Pre-establishment national treatment” as mentioned in the preceding paragraph means the treatment accorded to foreign investors and their investments no less favorable to that accorded to domestic investors and their investments at the stage of investment access; and “negative list” as mentioned in the preceding paragraph means a special administrative measure for access of foreign investment in specific fields as imposed by the state. The state accords national treatment to foreign investment outside of the negative list. The negative list shall be issued by or with the approval of the State Council. Where any international treaty or agreement concluded or acceded to by the People's Republic of China provides for any more favorable treatment in respect of access of foreign investors, the relevant provisions of the treaty or agreement may apply. Article 5 The state protects, according to the law, foreign investors' investment, income, and other lawful rights and interests within China. Article 6 Foreign investors and foreign-funded enterprises conducting investing activities within China shall abide by the laws and regulations of China, and neither compromise China's national security nor cause damage to the public interest. Article 7 The commerce department and the investment department of the State Council shall, based on their division of duties, conduct the promotion, protection, and administration of foreign investment; and other relevant departments of the State Council shall, within their respective scopes of duties, be responsible for the promotion, protection and administration of foreign investment. The relevant departments of a local people's government at or above the county level shall conduct the promotion, protection, and administration of foreign investment according to laws and regulations and the division of duties determined by the local people's government. Article 8 Employees of a foreign-funded enterprise shall establish a trade union and conduct trade union activities according to the law to protect the lawful rights and interests of employees. A foreign-funded enterprise shall provide support required for activities of its trade union. Chapter II Investment Promotion Article 9 The state's various policies to support the development of enterprises shall equally apply to foreign-funded enterprises according to the law. Article 10 Comments and recommendations from foreign-funded enterprises shall be requested in appropriate manners in the process of development of laws, regulations, and rules relating to foreign investment. Regulatory documents and adjudicative instruments, among others, relating to foreign investment shall be published in a timely manner according to the law. Article 11 The state establishes and improves a foreign investment service system to p......