China: Proposed changes to foreign investment laws

China: Proposed changes to foreign investment laws

Proposed amendments to China’s foreign investments laws, if enacted, could affect the investment landscape. The proposals are currently in draft form, but there are reports that these changes could be enacted and made effective within the next 18 months.

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Among the proposals are provisions that would:

  • Consolidate and simplify the various strands of China’s foreign investment laws, so as to effect parity of treatment for foreign or domestic companies
  • Affect pre-existing investment structures, specifically concerning “restricted” and “prohibited” industries for foreign investments
  • Include a requirement for national security review for foreign investments

 

Read an October 2015 report prepared by the KPMG member firm in China: Great leap forward for China’s Foreign Investment Law?

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