Foreign Investment Law of the People's Republic of China
(Adopted at the 2nd Session of the 13th National People's Congress on March 15, 2019)
Chapter 1: General Provisions
Chapter 2: Investment Promotion
Chapter 3: Investment Protection
Chapter 4: Investment Management
Chapter 5: Legal Liability
Chapter 6: Supplementary Provisions
Chapter 1: General Provisions
Article 1 This Law is formulated in accordance with the Constitution with a view to further opening up to the outside world, actively promoting foreign investment, protecting the legitimate rights and interests of foreign investment, standardizing foreign investment management, facilitating the formation of a new pattern of comprehensive opening-up, and promoting the healthy development of the socialist market economy.
Article 2 This Law applies to foreign investment carried out within the territory of the People's Republic of China (hereinafter referred to as "in China").
For the purpose of this Law, "foreign investment" means the investment activities carried out directly or indirectly by foreign natural persons, foreign enterprises or other foreign organizations (hereinafter referred to as "foreign investors") in China, including the following circumstances where:
(1) Foreign investors, independently or jointly with other investors, set up foreign-invested enterprises in China;
(2) Foreign investors obtain shares, equities, property shares or other similar rights and interests of Chinese domestic enterprises; and
(3) Foreign investors, independently or jointly with other investors, invest in new projects in China; and
(4) Investment through other means stipulated in laws, administrative regulations or provisions of the State Council.
For the purpose of this Law, "foreign-invested enterprises" mean enterprises registered and established in China in accordance with the Chinese laws, which are wholly or partly invested by foreign investors.
Article 3 The State adheres to the basic national policy of opening up to the outside world and encourages foreign investors to invest in China in accordance with the law.
The State implements policies to ensure high-level investment liberalization and facilitation, establishes and improves foreign investment promotion mechanisms, and creates a stable, transparent and predictable market environment with fair competition.
Article 4 The State implements a system of pre-entry national treatment plus negative list for the administration of foreign investment.
For the purpose of the preceding paragraph, "pre-entry national treatment" means the treatment given to foreign investors and their investment at market access stage of the investment that is no less favorable than that given to domestic investors and their investment; "negative list" means the special administrative measures stipulated by the State for foreign investment's access to specific areas. The State grants national treatment to foreign investment beyond the negative list.
The State Council shall be responsible for the issuance or approval of issuance of a negative list.
Where the international treaties or agreements which the People's Republic of China has concluded or acceded to provide for more favorable market access treatment for foreign investors, relevant provisions may apply.
Article 5 The State protects the investment, incomes and other legitimate rights and interests of foreign investors in China in accordance with the law.
Article 6 Foreign investors and foreign-invested enterprises engaging in investment activities in China shall abide by Chinese laws and regulations and shall not endanger China's national security or harm the public interest.
Article 7 The competent commerce department and the competent investment department under the State Council shall, according to the division of responsibilities, carry out the promotion, protection and administration of foreign investment; other relevant departments under the State Council shall be responsible for the foreign investment related promotion, protection and administration work within their respective functions and responsibilities.
The relevant departments of the local people's governments at or above the county level shall, in accordance with laws and regulations and the division of responsibilities determined by the people's government at the same level, carry out the promotion, protection and administration of foreign investment.
Article 8 Employees of foreign-invested enterprises shall establish trade union organizations according to law to carry out trade union activities and protect the legitimate rights and interests of employees. Foreign-invested enterprises shall provide necessary conditions for their trade unions to carry out activities.