China approves new foreign investment law

designed to level domestic playing field for overseas investors.

China law update

The final draft of foreign investment law was approved by 2929 National People’s Congress lawmakers in the Great Hall of the People, with eight opposing the measures and eight abstaining.

The new law will come into effect on January 1, 2020.

BEIJING — China’s national legislature on March 15 passed the foreign investment law at the closing meeting of its annual session.

An overwhelming majority of the deputies present at the closing meeting of the second session of the 13th National People’s Congress voted in favor of the law.

With unified provisions for the entry, promotion, protection and management of foreign investment, it is a new and fundamental law for China’s foreign investment.

The law aims to improve the transparency of foreign investment policies and ensure domestic and foreign enterprises are subject to a unified set of rules and compete on a level playing field, according to an explanatory document.