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China’s New Foreign Investment Law Takes Effect


China’s New Foreign Investment Law Takes Effect

February 13, 2020

In Spring 2019, China passed a new Foreign Investment Law (FIL), thereby granting foreign-invested enterprises and local companies equal treatment in the market. The Foreign Investment Law came into effect on 1st January 2020 and replaced the foreign investment regime referred to as the “Three Laws on Foreign Capital”. The new Foreign Investment Law, that should be considered as a framework guiding future foreign investment legislation, addresses some of the biggest challenges facing foreign investors: intellectual property rights, forced technology transfers and equal treatment in government procurement between local and foreign enterprises.

In Spring 2019, China passed a new Foreign Investment Law (FIL), thereby granting foreign-invested enterprises and local companies equal treatment in the market. The Foreign Investment Law came into effect on 1st January 2020 and replaced the foreign investment regime referred to as the “Three Laws on Foreign Capital”. The new Foreign Investment Law, that should be considered as a framework guiding future foreign investment legislation, addresses some of the biggest challenges facing foreign investors: intellectual property rights, forced technology transfers and equal treatment in government procurement between local and foreign enterprises.

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