Page 82 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
Therefore, the government specifically clarified the Section 6. Investment Management
law, making it clear that the securities of foreign Controls Systems
enterprises can be listed on Chinese exchanges.
The provisions in this portion of the Foreign
Section 4. Investment Protection Investment Law establishes three major systems for
foreign investment management: the negative list
The provision for this portion of the Foreign management system (Article 28), the information
Investment Law strengthens protection of the legal reporting system (Article 34) and the national
rights and interests of foreign investors primarily in security review system (Article 35).
following ways.
The Foreign Investment Law, Article 31, provides
The Foreign Investment Law, Article 20 (No that “The forms of organizations, institutional
Expropriation), Article 21 (Free Transfer of Funds frameworks, and rules of activities of foreign-
to and out of China pursuant to Law), Article 22 invested companies should comply with the
(Protection of Intellectual Property) and Article 23 Company Law of the People’s Republic of China
(Protection of Trade Secrets) will strengthen the (Company Law), the Partnership Enterprises Law
protection of property rights for foreign invested of the People’s Republic of China (Partnership Law)
enterprises in China. etc.” Previously, foreign invested enterprises,
for example joint ventures, were governed by
The Foreign Investment Law, Article 25 requires the Joint Venture Law, but not by the Company
local governments to comply with agreements they Law, so there was an inconsistency between
entered into with foreign investors. foreign invested companies and local companies.
Now all corporations in China, be it foreign or
Section 5. Complaint Institutions for otherwise, are governed by the Company Law;
Foreign Investors and Investments and all partnerships in China, whether foreign or
otherwise, are governed by the Partnership Law.
The Foreign Investment Law, Article 26
establishes a system for foreign-invested The Foreign Investment Law, Article 34 reads,
enterprises to file complaints against wrongful “China will establish a foreign investment
acts by government entities with regard to foreign information reporting system. Foreign investors
enterprises or foreign investors, and foreign or foreign-invested enterprises shall report
investors are granted access to application for and submit their investment information to the
administrative reconsideration and administrative commercial departments through the Enterprise
proceedings. Therefore, administrative authorities Registration System and the Enterprise Credit
among government agencies at all levels will Information Publicity System.The content and
address complaints from foreign investors and scope of foreign-investment information will be
reverse any wrongful decision with regard to determined according to the principle of necessity.
foreign investment made by other governmental Investment information will be available through
entities. department information sharing.”
According to the Foreign Investment Law, Based on the Interim Regulations of Enterprise
Article 26, administrative authorities that receive Credit Information Publicity System issued by the
complaints from foreign investors should be State Council (No. 654 Decree of the State Council),
formalized and staffed with a legally trained the Several Opinions on Building a New System
personnel. They should have sufficient authority to of Open Economy ([2015] No. 13 Document of the
revise and amend the decisions made by former Central Committee of the Communist Party of China)
administrative organizations regarding complaints and the Notice on the Relevant Work to Further
from foreign investors. Strengthen Foreign Investment Information Reporting
System and the Enterprise Credit Information Publicity
System issued by the Ministry of Commerce ([2017]
82
Therefore, the government specifically clarified the Section 6. Investment Management
law, making it clear that the securities of foreign Controls Systems
enterprises can be listed on Chinese exchanges.
The provisions in this portion of the Foreign
Section 4. Investment Protection Investment Law establishes three major systems for
foreign investment management: the negative list
The provision for this portion of the Foreign management system (Article 28), the information
Investment Law strengthens protection of the legal reporting system (Article 34) and the national
rights and interests of foreign investors primarily in security review system (Article 35).
following ways.
The Foreign Investment Law, Article 31, provides
The Foreign Investment Law, Article 20 (No that “The forms of organizations, institutional
Expropriation), Article 21 (Free Transfer of Funds frameworks, and rules of activities of foreign-
to and out of China pursuant to Law), Article 22 invested companies should comply with the
(Protection of Intellectual Property) and Article 23 Company Law of the People’s Republic of China
(Protection of Trade Secrets) will strengthen the (Company Law), the Partnership Enterprises Law
protection of property rights for foreign invested of the People’s Republic of China (Partnership Law)
enterprises in China. etc.” Previously, foreign invested enterprises,
for example joint ventures, were governed by
The Foreign Investment Law, Article 25 requires the Joint Venture Law, but not by the Company
local governments to comply with agreements they Law, so there was an inconsistency between
entered into with foreign investors. foreign invested companies and local companies.
Now all corporations in China, be it foreign or
Section 5. Complaint Institutions for otherwise, are governed by the Company Law;
Foreign Investors and Investments and all partnerships in China, whether foreign or
otherwise, are governed by the Partnership Law.
The Foreign Investment Law, Article 26
establishes a system for foreign-invested The Foreign Investment Law, Article 34 reads,
enterprises to file complaints against wrongful “China will establish a foreign investment
acts by government entities with regard to foreign information reporting system. Foreign investors
enterprises or foreign investors, and foreign or foreign-invested enterprises shall report
investors are granted access to application for and submit their investment information to the
administrative reconsideration and administrative commercial departments through the Enterprise
proceedings. Therefore, administrative authorities Registration System and the Enterprise Credit
among government agencies at all levels will Information Publicity System.The content and
address complaints from foreign investors and scope of foreign-investment information will be
reverse any wrongful decision with regard to determined according to the principle of necessity.
foreign investment made by other governmental Investment information will be available through
entities. department information sharing.”
According to the Foreign Investment Law, Based on the Interim Regulations of Enterprise
Article 26, administrative authorities that receive Credit Information Publicity System issued by the
complaints from foreign investors should be State Council (No. 654 Decree of the State Council),
formalized and staffed with a legally trained the Several Opinions on Building a New System
personnel. They should have sufficient authority to of Open Economy ([2015] No. 13 Document of the
revise and amend the decisions made by former Central Committee of the Communist Party of China)
administrative organizations regarding complaints and the Notice on the Relevant Work to Further
from foreign investors. Strengthen Foreign Investment Information Reporting
System and the Enterprise Credit Information Publicity
System issued by the Ministry of Commerce ([2017]
82
