Implementing Regulations for the PRC Foreign Investment Law (Draft for Comments)

中华人民共和国外商投资法实施条例 (征求意见稿)

November 14, 2019 | BY

Susan Mok

FIL implementing rules address the VIE structure concerns

Share:

Issued: November 1, 2019

Main contents: For the purposes of Item (3) of the second paragraph of Article 2 of the Foreign Investment Law, the phrase "investment in a new project in China" means that a foreign investor invests in the construction of a specific project in China, but neither establishes a foreign-invested enterprise nor acquires shares, equity, share of property or other similar rights or interests in an enterprise in China (Article 4).

Where a wholly-owned enterprise established outside China by a Chinese natural person, legal person or other organization makes an investment in China, it may, subject to