Regulation for Implementing the Foreign Investment Law of the People's Republic of China

Regulation for Implementing the Foreign Investment Law of the People's Republic of China

(No. 723)

The Regulation for Implementing the Foreign Investment Law of the People's Republic of China, as adopted at the 74th executive meeting of the State Council on December 12, 2019, is hereby issued, and shall come into force on January 1, 2020.

Premier: Li Keqiang
December 26, 2019

Regulation for Implementing the Foreign Investment Law of the People's Republic of China

Chapter I General Provisions

Article 1 This Regulation is developed in accordance with the Foreign Investment Law of the People's Republic of China (hereinafter referred to as the “Foreign Investment Law”).

Article 2 The state shall encourage and promote foreign investment, protect the lawful rights and interests of foreign investors, regulate the administration of foreign investment, continuously optimize the foreign investment environment, and advance a higher level of opening up.

Article 3 For the purposes of subparagraphs (1) and (3), paragraph 2, Article 2 of the Foreign Investment Law, “other investors” includes Chinese natural persons.

Article 4 The negative list for the access of foreign investment (hereinafter referred to as the “negative list”) shall be proposed by the investment department of the State Council in conjunction with the commerce and other appropriate departments of the State Council, and be reported to and issued by the State Council or after being reported to and approved by the State Council, be issued by the investment and commerce departments of the State Council.
The state shall adjust the negative list in due time based on the needs for the further expansion of opening up and the economic and social development. The provision of the preceding paragraph shall apply to the procedures for adjusting the negative list.

Article 5 The commerce department, investment department, and other appropriate departments of the State Council shall, according to their division of duties, jointly and effectively conduct the promotion, protection, and administration of foreign investment through close cooperation and collaboration.
The local people's governments at and above the county level shall enhance the organization and leadership of the promotion, protection and administration of foreign investment, support and supervise the promotion, protection and administration of foreign investment conducted by the appropriate departments in accordance with laws and regulations and their division of duties, and coordinate and resolve major issues in the promotion, protection and administration of foreign investment in a timely manner.

Chapter II Investment Promotion

Article 6 Governments and their appropriate departments shall, in accordance with the law, equally treat foreign-funded enterprises and wholly Chinese-funded enterprises in such aspects as government funding arrangements, land supply, tax and fee reduction and exemption, qualification licensing, development of standards, project applications, and human resource policies.
The policies develped by governments and their appropriate departments to support the development of enterprises shall be disclosed to the public in accordance with the law. For matters that require applications of enterprises in the implementation of policies, governments and their appropriate departments shall disclose to the public the conditions, steps, and time limits, among others, for such applications, and during examination, equally treat foreign-funded enterprises and wholly Chinese-funded enterprises in accordance with the law.

Article 7 In the development of administrative regulations, rules, and regulatory documents relating to foreign investment, or when governments and their appropriate departments draft laws and local regulations relating to foreign investment, comments and recommendations from foreign-funded enterprises and the relevant chambers of commerce and associations, among others, shall be solicited according to the actual circumstances in multiples forms, such as written requests for comments, symposiums, justification meetings, and hearings; and for comments and recommendations involving central issues or the major rights and obligations of foreign-funded enterprises, feedbacks regarding the adoption of such comments and recommendations shall be provided by appropriate means.
Regulatory documents relating to foreign investment shall be published in a timely manner in accordance with the law, and those unpublished shall not serve as the basis for public administration. For regulatory documents closely related to the production and distribution activities of foreign-funded enterprises, the time between their issuance and implementation shall be rationally determined according to the actual circumstances.

Article 8 The people's governments at all levels shall establish and improve their foreign investment service systems under the principles of government dominance and participation by multiple parties, and continuously raise their foreign investment service capabilities and levels.

Article 9 Governments and their appropriate departments shall, in a centralized manner, publish the laws, regulations, rules, regulatory documents, policies, and measures relating to foreign investment and investment project information through government websites and the national integrated online government service platform, strengthen publicity and interpretation through various channels and in various methods, and provide advisory, guidance, and other services for foreign investors and foreign-funded enterprises.

Article 10 For the purposes of Article 13 of the Foreign Investment Law, “special economic zones” means the specific zones established with the approval of the state where stronger policies and measures for opening up are implemented.
The experimental foreign investment policies and measures implemented by the state in some regions, which have proved practicable, may extend to other regions or nationwide according to the actual circumstances.

Article 11 As needed for national economic and social development, the state shall develop a catalogue of industries for encouraging foreign investment to specify the industries, fields, and regions where foreign investors are encouraged and directed to invest. The catalogue of industries for encouraging foreign investment shall be drafted by the investment department of the State Council in conjunction with the commerce and other appropriate departments of the State Council, and after being reported to and approved by the State Council, be issued by the investment and commerce departments of the State Council.

Article 12 Foreign investors and foreign-funded enterprises may enjoy fiscal, taxation, financial, land use, and other preferences in accordance with laws, administrative regulations, or the provisions issued by the State Council.
Foreign investors increasing their investment within China with their return on investment within China may enjoy corresponding preferences in accordance with the law.

Article 13 Foreign-funded enterprises and wholly Chinese-funded enterprises shall equally participate in the development and revision of national standards, industry standards, local standards, and group standards in accordance with the law. Foreign-funded enterprises may, as needed, develop enterprise standards independently or jointly with other enterprises.
Foreign-funded enterprises may propose the initiation of development of standards to the standardization and other appropriate administrations, offer comments and recommendations during the course of, among others, the initiation of development, drafting, and technical review of standards and the provision of feedbacks on and assessment of the implementation of standards, and, according to the relevant provisions, undertake work related to the drafting and technical review of standards as well as translation of standards into foreign languages.
The standardization and other appropriate administrations shall establish and improve the relevant working mechanisms, increase the transparency of the development and revision of standards, and promote the public disclosure of the whole process of development and revision of standards.

Article 14 The compulsory standards developed by the state shall apply equally to foreign-funded enterprises and wholly Chinese-funded enterprises, and no technical requirements higher than compulsory standards may exclusively apply to foreign-funded enterprises.

Article 15 Governments and their appropriate departments shall not obstruct or restrict foreign-funded enterprises from freely entering the government procurement markets within their respective regions or regulated industries.
Purchasers and procurement agencies in government procurement shall not apply differential or discriminatory treatment to foreign-funded enterprises in such aspects as the release of government procurement information, determination of conditions for suppliers, eligibility examination, and bid evaluation criteria, shall not limit the suppliers by imposing ownership form, organizational form, equity structure, country of investor, product or service brand, and other unreasonable conditions, and shall not treat differently the products produced or services provided within China by foreign-funded enterprises and those of wholly Chinese-funded enterprises.

Article 16 Foreign-funded enterprises may, in accordance with the provisions of the Government Procurement Law of the People's Republic of China (hereinafter referred to as the “Government Procurement Law”) and its implementing regulation, file inquiries and raise questions on government procurement activities with purchasers and procurement agencies, and file complaints with the government procurement regulatory departments. Purchasers, procurement agencies, and government procurement regulatory departments shall reply or make disposition decisions within the prescribed time limit.

Article 17 The government procurement regulatory departments and other appropriate departments shall strengthen the supervisory inspection of government procurement activities, and in accordance with the law, correct, investigate, and ......