Fixing the FDI Framework

改革外商投资体制

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CLP Temp &clp articles

Tina Ye and Casper Shi of Jin Mao Partners provide insight on the record filing reform, the impact of national security laws on foreign investors and the FDI policies in the pipeline. 金茂律师事务所的叶甜甜律师和石钛戈律师探讨了备案制度改革、国家安全审查对外资的影响以及草拟中的外商直接投资政策。

1. How does the record filing reform affect FIEs?

Under the new scheme, the establishment and changes of foreign-invested enterprises (FIEs) that fall outside the scope of the negative list are now subject to a record filing procedure, instead of examination and approval by the department of commerce. As specified in Announcement [2016] No.22 (Announcement 22), released by the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM), the negative list refers to the prohibited and restricted categories of the Foreign Investment Industrial Guidance Catalogue (Amended in 2015) (Catalogue), as well as any encouraged categories with minimum Chinese shareholding or senior management nationality requirements.

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