China Foreign Direct Investment ( FDI ) legal framework

Jun 14
09:53

2013

Zhi Dong

Zhi Dong

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The law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures, was promulgated by the National People's Congress in 1979, then the work of utilizing foreign capital as an important content of opening up to the outside world initiated as China's fundamental principle. China's law and managerial system on foreign investment have been gradually perfected

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The Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures,China Foreign Direct Investment ( FDI ) legal framework Articles was promulgated by the National People's Congress in 1979, then the work of utilizing foreign capital as an important content of opening up to the outside world initiated as China's fundamental principle. After twenty years of great efforts, the scale of absorbing foreign capital increasingly expanded as well as the level was increasingly upgraded when China's law and managerial system on foreign investment have been gradually perfected. The achievements won the whole world's attention, which effectively promoted the continuous, fast and healthy development of national economy.

As for the legal framework, the main laws and regulations for foreign investments in China include:

Major Foreign Investment Laws and Regulations

* The law of P.R.C. on Chinese-Foreign Equity Joint Ventures and its implementation regulations;

* The law of P.R.C. on Chinese-Foreign Contractual Joint Ventures and its implementation regulations;

* The law of P.R.C. on Wholly Foreign-Owned Enterprise and its implementation regulations;

* The law of P.R.C. on Foreign-invested enterprises, the income tax and its implementation regulations;

* Provisions on Guiding Foreign Investment Direction; Industrial Catalogue for Foreign Investment; Catalogue of Advantageous Sectors for Foreign Investment in Central and Western Regions;

* The law of P.R.C on the Protection Taiwan Compatriots' Investment.

(Note: the related laws and regulations also apply to the investments from Hong Kong, Macao and Taiwan in China mainland.)

General Laws and Regulations

* The Company Law of the People's Republic of China;

* The Contract Law of the People's Republic of China;

* The Insurance Law of the People's Republic of China;

* The Arbitration Law of the People's Republic of China;

* The Labor Law of the People's Republic of China;

* Provisional Regulations of the People's Republic of China on value-added Tax;

* Provisional Regulations of the People's Republic of China on Consumption Tax;

* Provisional Regulations of the People's Republic of China on Business Tax.

International Treaties

* Bilateral Investment Treaties;

* Bilateral Agreement on the Avoidance of Double Taxation.

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