China's spectacular foreign investment transformation

Mar 2019

As part of the ongoing reform of China’s regulation of foreign investment, the National People’s Congress approved a new Foreign Investment Law (“FIL”) on 15 March 2019.  When it takes effect on 1 January 2020 it will replace existing laws, providing greater flexibility for foreign investors, particularly in relation to joint ventures.  Foreign investors should monitor the release of implementing regulations and be prepared to make changes to their existing investments as well as assess new opportunities, including in sectors previously restricted to foreign investment.