DetailsOn March 15th, 2019, the Second Session of the 13th National People's Congress passed the Foreign Investment Law of the People¡¯s Republic of China (hereinafter called ¡°Foreign Investment Law¡±), which will be effective from 2020 January 1st.
The Foreign Investment Law is a comprehensive and fundamental set of legal standards for foreign investment activities in China under new circumstances, and shall play a leading role as an overarching law in this field.
According to the Foreign Investment Law, the Pre-Establishment National Treatment Plus a Negative List Management System shall be applied for foreign investment. Sectors not on the entry negative list for foreign investment will be managed in accordance with the principle of equal treatment for domestic and foreign capital. The state shall guarantee that foreign-invested enterprises can participate in government procurement activities through fair competition in accordance with law, and government procurement shall offer equal treatment to products of foreign-invested enterprises produced in China.
The Foreign Investment Law presents China's determination and confidence in opening wider to the outside world and promoting foreign investment in the new era.