China: Foreign Investment Law
On March 15, China’s Congress passed the Foreign Investment Law of the People's Republic of China. The law goes into effect January 1, 2020. Officially, it is intended to “vigorously promote foreign investment, protect the legitimate rights and interests of foreign investors, [and] standardize the management of foreign investment.”
The legislation will supersede three existing laws, including the Wholly Foreign-Owned Enterprises Law, also known as the Foreign-Capital Enterprises Law. Among other specific aims, the new law seeks to give foreign investors equal treatment when applying for licenses and competing for government procurement activities. The legislation also states that it “will protect the legitimate rights and interests of holders of intellectual property rights and relevant right holders,” a major concern for foreign investors.