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 Public Comments Requested on the Regulation for Implementation of the Foreign Investment Law
Chinese
Category:Legislative Updates  
Subject:Foreign investment  
Keywords:Regulation for Implementation of the Foreign Investment Law;  intellectual property rights
Source:Pkulaw
Publish Date:11-07-2019
 
On November 1, 2019, the Ministry of Justice , the Ministry of Commerce, and the National Development and Reform Commission jointly issued the Regulation for the Implementation of the Foreign Investment Law of the People's Republic of China (Exposure Draft), and comments may be submitted until December 1, 2019.
With a total of 45 articles in five chapters, the Draft covers, among others, basic issues on foreign investment, investment promotion, investment protection, investment management, transitional arrangements for the organizational forms of existing foreign-funded enterprises, and application of law to investment from Hong Kong, Macao and Taiwan.
According to the Exposure Draft, the state is to establish a punitive compensation system for infringement of intellectual property rights to increasingly protect the foreign intellectual property rights. A foreign investor may, according to the law, freely transfer into or out of China, in Renminbi or a foreign currency, its contributions made, profits, capital gains, proceeds from disposition of assets, and royalties of intellectual property rights derived from, indemnity or compensation lawfully acquired, and income from liquidation, among others, within the territory of China, and no entity or individual may illegally restrict the currency, amount and frequency in remittance. Where a wholly-owned enterprise established outside the territory of China by a Chinese natural person, legal person or other organization invests within China, it may not be subject to the special administrative measure for access as specified in the foreign investment access negative list. Unless otherwise stipulated by laws and regulations, a foreign-funded enterprise shall have the right to decide to join in or withdraw from a chamber of commerce, association, or any other social organization on its own initiative, and no entity or individual may intervene. Where an investor from the Hong Kong Special Administrative Region or the Macao Special Administrative Region invests in the Mainland, the Foreign Investment Law and this Regulation shall apply, mutatis mutandis, and where an investor from Taiwan Region invests in the Mainland, the Law on the Protection of Investments by Taiwan Compatriots and the Detailed Rules for the Implementation thereof shall apply, and the matters not involved shall be subject to the Foreign Investment Law and this Regulation.
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