Foreign investors allowed to use capital contributions

The Ministry of Commerce (MOFCOM) issued the Tentative Provisions Involving Equity Investments of Foreign-invested Enterprises (商务部关于涉及外商投资企业股权出资的暂行规定) on September 21. They became effective on October 22.

The Provisions lay out how foreign investors can use equity interests in a Chinese company to invest in another foreign-invested enterprise (FIE). They also prevent certain foreign investors from restricted industries from investing in another FIE.