Law of the People's Republic of China on Foreign Investment (Закон Китайской Народной Республики «Об иностранных инвестициях»)

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Law of the People's Republic of China on Foreign Investment
(Закон Китайской Народной Республики «Об иностранных инвестициях»)

(Adopted at the Second Session of the Thirteenth National People's Congress of the People's Republic of China on March 15, 2019)

Chapter I
General Provisions

Article 1 This Law is formulated in accordance with the Constitution for the purposes of further expanding opening up, actively promoting foreign investment, protecting the legitimate rights and interests of foreign investors, regulating foreign investment administration, striving to form a new structure in the pursuit of opening up on all fronts, and promoting the healthy development of the socialist market economy.

Article 2 This Law applies to foreign investment in the territory of the People's Republic of China (hereinafter referred to as «in the territory of China»).

«Foreign investment» referred to in this Law means the investment activities conducted directly or indirectly by foreign natural persons, foreign enterprises or other foreign organizations (hereinafter referred to as «foreign investors») in the territory of China, including the following circumstances:

(1) a foreign investor sets up a foreign-invested enterprise in the territory of China individually or jointly with any other investor;

(2) a foreign investor acquires shares, equities, shares of property, or other similar rights and interests of an enterprise in the territory of China;

(3) a foreign investor invests in a new project in the territory of China individually or jointly with any other investor;

(4) investment in other ways as prescribed by laws, administrative regulations or prescribed by the State Council.

«A foreign-invested enterprise» referred to in this Law means an enterprise that is wholly or partly invested by a foreign investor and registered in the territory of China in accordance with Chinese law.

Article 3 The State adheres to the fundamental national policy of opening up, and encourages foreign investors to invest in the territory of China in accordance with law.

The State implements policies of high-level investment liberalization and facilitation, establishes and improves foreign investment promotion mechanisms, and creates a stable, transparent, predictable, and fair market environment.

Article 4 The State implements a system of pre-establishment national treatment plus negative list for foreign investment.