Foreign Direct Investment

2021 regulatory trends in China, including antitrust, data privacy, sanctions, healthcare, PE/VC, capital markets, IP, banking & finance, TMT and arbitration.

Regulation of platform economy to focus on anti-trust, data security, and personal information protection; U.S. might ban import of rare earth metals from China for military use; new process to expedite application of certain trademarks

CSRC proposes introducing DVP for institutional stock investors; FDI hits another record high in 2021 despite pandemic; and MIIT calls on light industry enterprises to upgrade products

With the entrenchment of reciprocal US-China sanctions and export controls in the past year, counsel have helped clients enact fundamental changes to their approach to making deals, from contractual terms to due diligence

Kevin Yuan, Lucca Li and Jocelyn Chen of FenXun Partners discuss China's efforts to support continuous financial innovation in 2021 based on steady development including taking steps to protect the security of personal data in the midst of rapid developments in finance and technology, implementing detailed rules and new initiatives related to fintech innovation, and taking clear steps to open up the financial market to the outside world.

VIE overseas listings require government consent

Foreign investors are allowed to conduct social surveys

Manufacturing and service industries further opens up to foreign investment but loophole allowing foreign investment in restricted sectors is plugged; food producers warn of major disruptions as all foodstuffs now subject to import regulation; and trial macroprudential policy guidelines provide key definitions and high-level guidance for managing systemic financial risks

Guo Yongmao of Haiwen & Partners discusses the various types of taxes under the PRC tax regime that new companies must consider when setting up a business in mainland China and highlights how tax impacts investors of a PRC company if they are foreign entities when considering dividends distribution, interest payment and transfer pricing