You are here: Home > Business > Investment Guide

Adjust font size:

In order to create a favorable investment environment and encourage foreign investment, the Chinese government has made great efforts to improve the legislation on foreign investment since it adopted a policy of reform and opening up in 1978.

China's legal system is rapidly maturing in the area of foreign investment regarding the establishment, operation, taxation, foreign exchange management, dispute settlement, termination and liquidation of foreign-invested enterprises. A series of laws and regulations have been implemented to protect the legitimate rights and interests of both domestic and overseas investors.

China has also entered into bilateral investment treaties with more than 130 countries and regions to help protect their investors' interests. By the end of May 2011, China had signed bilateral agreements on the Avoidance of Double Taxation with 96 countries, and taxation arrangements with its Hong Kong and Macao special administration regions.

Beijing has also, in light of national laws, regulations or ministerial rules, formulated different supplementary provisions and local policies to regulate and boost foreign investment.

A. Major laws and regulations for foreign investment in China:

1. Specific Laws and Regulations on Foreign Investment

1) The Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures (Revised 2001) and its implementation rules (Revised 2001);

2) The Law of the People's Republic of China on Chinese-Foreign Cooperative Joint Ventures (Revised 2000) and its implementation rules (1995);

3) The Law of the People's Republic of China on Wholly Foreign-Owned Enterprises (Revised 2000) and its implementation rules (2001);

4) The Provisions on Guiding Foreign Investment Direction (2002); The Catalogue of Industries for Guiding Foreign Investment (Revised 2011); The Catalogue of Advantageous Sectors for Foreign Investment in Central and Western Regions of China (Revised 2008);

5) The Law of the People's Republic of China on the Protection of Investment of Taiwan Compatriots (1994) and its implementation rules (1999);

6) The Provisions on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (Revised 2009);

7) The Provisions on the Establishment of Investment Companies by Foreign Investors (Revised 2004);

8) The Interim Provisions Concerning Some Issues on the Establishment of Joint Stock Limited Companies with Foreign Investment (1995);

9) The Provisions Concerning the Administration of Foreign-funded Business-starting Investment Enterprises (2003);

10) The Measures for Administration on Foreign Investment in Commercial Fields (2004) and its supplementary provisions;

11) The Interim Provisions on Equity Contributions Involving Foreign-funded Enterprises (2012);

12) The Provisions on the Administration of Foreign-invested Advertising Enterprises (Revised 2008);

13) The Provisions on the Administration of Foreign-funded Telecommunications

Enterprises (Revised 2008);

14) The Measures for the Administration of Foreign-invested Mineral Exploration

Enterprises (2008);

15) The Provisions on Foreign Investment in Civil Aviation (2002) and its supplementary provisions;

16) The Regulations of the People's Republic of China on the Administration of Foreign-invested Banks (2006) and its implementation rules;

17) The Interim Measures for the Work Relating to the Complaints of Foreign-funded Enterprises (2006);

18) The Measures Governing Foreign-funded International Freight Forwarding Agent Enterprises (2005);

19) The Interim Measures of the General Administration of Customs of the People's Republic of China for the Supervision over Export Processing Zones (Revised 2003);

20) The Interim Measures for the Administration of Sino-foreign Equity Joint and Cooperative Joint Medical Institutions (2000);

21) The Provisions on the Registration of Foreign-funded Partnership Enterprises (2010);

22) The Administrative Measures on Establishment of Partnership Enterprises by Foreign Enterprises or Individuals in China (2009);

23) The Regulation of the People's Republic of China on the Administration of Foreign-funded Insurance Companies (2001);

24) The Provisional Regulation on Investment in Cinemas by Foreign Investors and its supplementary provisions (2003);

25) The Measures for the Administration of Strategic Investment in Listed Companies by Foreign Investors (2005);

26) The Measures for the Administration of Foreign Investment in the Leasing Industry (2005);

27) The Administrative Regulations of the People's Republic of China Governing the Registration of the Registration of Enterprises as Legal Persons (1988) and its implementation rules;

28) The Regulations on Administration of Registration of Resident Offices of Foreign Enterprises (2010);

29) The Provisions of the State Council on the Encouragement of Foreign Investment (1986);

30) The Provisions of the State Council Concerning the Encouragement of Investments by Overseas Chinese and Compatriots from Hong Kong and Macao (1990).

Print E-mail

Go to Forum >>0 Comment(s)

Add your comments...

• User Name Required
• Your Comment
• Enter the words you see:    
  Racist, abusive and off-topic comments may be removed by the moderator.