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Regulation for Implementing the Foreign Investment Law



 (No. 723)

Order of the State Council of the People's Republic of China


The Regulation for Implementing the Foreign Investment Law of the People's Republic of China, as adopted at the 74th executive meeting of the State Council on December 12, 2019, is hereby issued, and shall come into force on January 1, 2020.

Premier: Li Keqiang

December 26, 2019


 

Article 1 This Regulation is developed in accordance with the Foreign Investment Law of the People's Republic of China (hereinafter referred to as the “Foreign Investment Law”).

Article 2 The state shall encourage and promote foreign investment, protect the lawful rights and interests of foreign investors, regulate the administration of foreign investment, continuously optimize the foreign investment environment, and advance a higher level of opening up.

Article 3 For the purposes of subparagraphs (1) and (3), paragraph 2, Article 2 of the Foreign Investment Law, “other investors” includes Chinese natural persons.

Article 4 The negative list for the access of foreign investment (hereinafter referred to as the “negative list”) shall be proposed by the investment department of the State Council in conjunction with the commerce and other appropriate departments of the State Council, and be reported to and issued by the State Council or after being reported to and approved by the State Council, be issued by the investment and commerce departments of the State Council.

The state shall adjust the negative list in due time based on the needs for the further expansion of opening up and the economic and social development. The provision of the preceding paragraph shall apply to the procedures for adjusting the negative list.

Article 5 The commerce department, investment department, and other appropriate departments of the State Council shall, according to their division of duties, jointly and effectively conduct the promotion, protection, and administration of foreign investment through close cooperation and collaboration.

The local people's governments at and above the county level shall enhance the organization and leadership of the promotion, protection and administration of foreign investment, support and supervise the promotion, protection and administration of foreign investment conducted by the appropriate departments in accordance with laws and regulations and their division of duties, and coordinate and resolve major issues in the promotion, protection and administration of foreign investment in a timely manner.

Article 6 Governments and their appropriate departments shall, in accordance with the law, equally treat foreign-funded enterprises and wholly Chinese-funded enterprises in such aspects as government funding arrangements, land supply, tax and fee reduction and exemption, qualification licensing, development of standards, project applications, and human resource policies.

The policies develped by governments and their appropriate departments to support the development of enterprises shall be disclosed to the public in accordance with the law. For matters that require applications of enterprises in the implementation of policies, governments and their appropriate departments shall disclose to the public the conditions, steps, and time limits, among others, for such applications, and during examination, equally treat foreign-funded enterprises and wholly Chinese-funded enterprises in accordance with the law.

Article 17 The government procurement regulatory departments and other appropriate departments shall strengthen the supervisory inspection of government procurement activities, and in accordance with the law, correct, investigate, and punish violations of laws and regulations such as differential treatment or discriminatory treatment to foreign-funded enterprises.

Article 18 Foreign-funded enterprises may legally raise funds within or outside China by means such as the public offerings of stocks, corporate bonds, and other securities, the public or non-public offerings of other financing instruments, and external debts.

Article 19 The local people's governments at and above the county level may, in accordance with the provisions of laws, administrative regulations, and local regulations, develop foreign investment promotion and facilitation policies and measures within their respective statutory powers in such aspects as fee reduction and exemption, guarantee of land use quota, and provision of public services.

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