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How does China’s new Foreign Investment Law affect existing and newly established companies with foreign capital in China?

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 The new reporting system will replace the prior system of individual approvals of foreign investments by Ministry of Commerce of the People's Republic of China (MOFCOM).

Previously it was necessary to obtain approval for investments in "limited industries" from the Ministry of Commerce of the People's Republic of China. Such approval could be exempted if  investments in industries weren’t included in the Negative list.
New reporting system includes as follows:

1. Providing information on foreign investment within 30 days;
2. Sumbission of annual reports by th 30th of April;
3. Certain requirements for the companies with foreign investments with total assets, sales income or revenues of more than 10 billion yuan per year, or which have more than 10 subsidiaries. Such companies must submit report quarterly within 30 days after the end of each quarter.
This Foreign Investment Law will extend the list of circumstances for supervision to prevent any damages from foreign investment to China's national security.


  • Company registration in China
  • Representative office registration in China
  • Foreign investment in the banking sphere in China
  • Employment of foreigners in China

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