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You are here：Home page news
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China Plans to Amend Laws to Manage Foreign Investment through Negative List
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Reading:672 Origin：Guangzhou Cucheng Service Group Refresh time:2016-9-6 |
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The draft amendment for the People's Republic of China on Foreign-funded Enterprises, the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures, the Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures and the Law of the People's Republic of China on the Protection of Investments of Compatriots from Taiwan was submitted to the 22nd Meeting of the Standing Committee of the 12th National People’s Congress on August 29 for a review. This will lay a legal foundation for China to adopt the foreign investment management mode based on negative list in an all-around way. It is also a significant reform of foreign investment management system.
The draft amendment proposes to add a provision to each of the four laws: For enterprises not covered by the special access management measures as required by the Chinese government, related examination and approval should be changed into registration management; the special access management measures as required by the Chinese government should be released by the State Council or by other authorities under the approval of the State Council.
Gao Hucheng, Minister of Commerce of China, explained at the meeting that, on August 30, 2013, the NPC Standing Committee adopted the Decision to Authorize the State Council to Make Temporary Adjustment of Related Legally Required Administrative Examination and Approval Procedures at the China (Shanghai) Pilot Free Trade Zone, which allows the State Council to cancel some administrative examination and approval procedures stipulated under the People's Republic of China on Foreign-funded Enterprises, the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures and the Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures and substitute registration management for these procedures at the Shanghai Pilot FTZ. Such authorization will be expired on September 30, 2016.
“According to related evaluation, in the recent more than two years, obvious achievements have been made in related pilot program at the pilot FTZ. Therefore, there have been sufficient conditions for the experience to be copied and promoted in other places. For this, amendment of the three laws mentioned above should be made in accordance with the decision of the NPC Standing Committee to upgrade the reform measures practiced at the pilot FTZ into laws,” said Gao Hucheng.
He explained specifically that the amendment targets at special terms based on the deadline and requirements under the decision of the NPC Standing Committee for authorization, not involving any other matters.
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