After a long wait, on 19 January 2015, China's Ministry of Commerce (MOFCOM) released the draft Foreign Investment Law for public comment. The draft Foreign Investment Law represents a significant step forward in China's continuing reform and opening-up. When it comes into effect, the Foreign Investment Law will replace the current three main laws on foreign-investment enterprises (i.e., the Law on Wholly Foreign Owned Enterprises, the Law on Equity Joint Ventures, and the Law on Cooperative Joint Ventures), and introduce various other changes.
Comments on the draft Foreign Investment Law will be accepted till 17 February 2015. It is not clear when the Foreign Investment Law will be finalized and issued. Since the draft Foreign Investment Law only sets out the general regulatory framework and certain principles, more legislative work will be required before the full details of the system emerge.
To read more about the draft legislation from our team in China, click here.
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