Publication
Introduction To Foreign Investment Into China (2021 edition)
A practical guide to China’s Foreign Investment Law and how to structure an investment into China.
Dr. Richard van Ostende, DBA
Why This Guide?
China’s investment rules have been fundamentally reshaped.
With the Foreign Investment Law taking effect in 2020, China replaced three earlier laws with a single framework governing foreign investment. The law aims to promote and protect foreign investment and to place foreign-invested enterprises on an equal footing with domestic companies. For investors, however, the new system raises important questions: is the planned investment feasible, which requirements apply, and under what conditions can it proceed? This guide provides a practical overview of how investment into China is structured and what foreign investors need to know.
What This Guide Covers
The guide addresses the following key topics and themes:
- The structure of China’s foreign investment management system under the 2020 Foreign Investment Law.
- The Foreign Investment Law’s implementing regulations and how they replace the three previous investment laws.
- The definitions of foreign direct investment, reinvestment and investment promotion.
- The steps foreign investors take to determine whether a planned investment is possible, and under which requirements and conditions.
- Investment promotion measures and the obligations of local governments.
- Investment protection, including expropriation, international remittances, business secrets, intellectual property and technology transfer.
- Complaint handling procedures and penalties for non-compliance.
Practical Tools Included
Practical tools to help apply these concepts in real world settings:
- Step-by-step overview of the investment process, from feasibility check to market entry.
- Summaries of the key provisions of the Foreign Investment Law and its implementing regulations.
- Overview of investment promotion measures and available local incentives.
- Guidance on investor rights and protections, and how to enforce them.
- Explanation of the complaint mechanism for foreign-invested enterprises.
Who Is This Guide For?
Designed for professionals planning or advising on investments into China:
- Foreign investors evaluating or planning an investment in China
- International companies expanding their business into China
- Legal and compliance professionals advising on foreign investment
- Managers responsible for China market entry and operations
- Professionals seeking a practical understanding of China’s foreign investment framework
From Publication to Professional Development
Related Course
Deepen your knowledge with our Navigating China’s Foreign Investment Landscape Masterclass, an online course that covers the same topics as this guide. It adds a stronger focus on practice: assessing whether a planned investment is feasible, identifying the requirements that apply, and taking the right steps for a successful market entry.
About The Author
What People Say
Dr. Richard van Ostende, DBA
Richard van Ostende is founder of the Institute for China Studies. He combines extensive professional experience and practical expertise in corporate finance, foreign investment and business strategy.