Foreign Investment Law of the People's Republic of China
(Adopted at the Second Session of the Thirteen National People's Congress on March 15, 2019)
第一章 总 则
Chapter I General Provisions
Article 1In order to open wider to the outside world, actively promote foreign investment, protect the legitimate rights and interests of foreign investors, regulate the administration of foreign investment, impel the formation of a new pattern of comprehensive opening-up and facilitate the sound development of the socialist market economy, the present Law is enacted in accordance with the Constitution.
Article 2 Any foreign investment within the territory of the People's Republic of China ("within the territory of China") is subject to the present Law.
For the purpose of the present Law, foreign investment refers to any investment activity directly or indirectly carried out by foreign natural persons, enterprises or other organizations (hereinafter "foreign investors"), including the following circumstances:
1. a foreign investor establishes a foreign-funded enterprise within the territory of China, either alone or together with any other investor;
2. a foreign investor acquires shares, equities, property shares or any other similar rights and interests of an enterprise within the territory of China;
3. a foreign investor invests in any new project within the territory of China, either alone or together with any other investor; and
4. a foreign investor invests a in any other way stipulated under laws, administrative regulations or provisions of the State Council.
For the purpose of the present Law, a foreign-funded enterprise refers to an enterprise incorporated under Chinese laws within the territory of China and with all or part of its investment from a foreign investor.
Article 3 The State adheres to the basic state policy on opening-up and encourages foreign investors to invest within the territory of China according to law.
The State implements policies of high-level investment liberalization and convenience, establish and improve a foreign investment promotion mechanism, and create a stable, transparent and predictable market environment featuring fair competition.
Article 4 The State adopts the management system of pre-establishment national treatment and negative list for foreign investment.
For the purpose of the preceding paragraph, the pre-establishment national treatment refers to granting to foreign investors and their investments, in the stage of investment access, the treatment no less favorable than that granted to domestic investors and their investments; the negative list refers to special administrative measures for access of foreign investment in specific fields as stipulated by the State. The State will give national treatment to foreign investments outside the negative list.
The negative list will be released by or upon approval by the State Council.
If more preferential treatment for access of foreign investors is provided under international treaties or agreements governing foreign investment that the People's Republic of China concludes or accedes, such provisions may apply.
Article 5 The State protects foreign investors' investment, earnings and other legitimate rights and interests within the territory of China pursuant to the present Law.
Article 6 Foreign investors and foreign-funded enterprises which carry out investment activities within the territory of China shall observe Chinese laws and regulations, and shall not jeopardize China's security or damage public interests.
Article 7 The competent department for commerce and the competent department for investment under the State Council shall, as per the division of duties, push forward, protect and manage foreign investment, while other relevant departments under the State Council shall take charge of the promotion, protection and management of foreign investment ex officio.
The relevant department under a local people's government at or above the county level shall promote, protect and manage foreign investment according to laws and regulations and the division of duties determined by the people's government at the same level.
Article 8 Employees of a foreign-funded enterprise shall, according to the present Law, establish a trade union, conduct trade union activities, and maintain the legitimate rights and interests of employees. Foreign-funded enterprises shall provide its trade union with necessary conditions to carry out activities.