PRC Foreign Investment Law (Draft for Comments)

商务部新闻发言人孙继文就《中华人民共和国外国投资法（草案征求意见稿）》公开征求意见发表谈话

Spokesman Sun Ji-wen of the Ministry of Commerce commented on the solicitation of public views on the “PRC Foreign Investment Law (Draft for Comments)”

http://www.mofcom.gov.cn/article/ae/ag/201501/20150100871007.shtml

 

2015年1月19日，商务部公布《中华人民共和国外国投资法（草案征求意见稿）》，向社会公开征求意见。商务部新闻发言人孙继文就此发表谈话。

On the 19^th day of January 2015, the Ministry of Commerce published the “Foreign Investments Law of the People’s Republic of China (the Draft for Comments)”, with a view to soliciting views from the public. The spokesman for the MOC Mr. Sun Ji-wen delivered a talk on this.

孙继文表示，改革开放早期制定的《中外合资经营企业法》、《外资企业法》和《中外合作经营企业法》（以下简称外资三法），奠定了我国利用外资的法律基础，为推动我国改革开放伟大历史进程做出了重大贡献。随着国内外形势发展，现行外资三法已经难以适应全面深化改革和进一步扩大开放的需要。一是外资三法确立的逐案审批制管理模式已不能适应构建开放型经济新体制的需要，不利于激发市场活力和转变政府职能；二是外资三法中关于企业组织形式、经营活动等规定和《公司法》等有关法律存在重复甚至冲突；三是外资并购、国家安全审查等重要制度需要纳入外国投资的基础性法律并进一步完善。

As per Mr. Sun, the Law for Sino-foreign Equity Joint Venture Enterprises, the Law for Wholly Foreign Owned Enterprises, and the Law for Sino-foreign Cooperative Joint Venture Enterprises (collectively referred to as “the three Foreign Investment Laws” hereafter), which were enacted for the reform in the old days, have provided a foundation for the use of foreign direct investment in our country, and made enormous contribution to the great historical progression for steering the opening up of our country. In the wake of the development of the situation within and outside China, the Three Foreign Investment Laws could not meet the requirement for an across-the-board and in-depth reform. First, the approval mode that has been laid down in the Three Foreign Investment Laws can no longer meet the requirement for the construction of a new and open economic system, and are not conducive to providing the market dynamics and changing the government’s functions.  Second, the rules specified for organizational structure and business operations in the Three Foreign Investment Laws overlap and in some instances conflict with the provisions of the Company Law. Third, certain important vetting system, such as merger and acquisition involving foreign enterprises and national security, is required to be included in the fundamental laws of foreign investment, and further improved.

党的十八届三中全会提出“构建开放型经济新体制”， “统一内外资法律法规，保持外资政策稳定、透明、可预期”，“改革涉外投资审批体制”，“探索对外商投资实行准入前国民待遇加负面清单的管理模式”；党的十八届四中全会要求“适应对外开放不断深化，完善涉外法律法规体系，促进构建开放型经济新体制”。这为我们开展外资三法修改工作指明了方向。为贯彻落实党的十八届三中、四中全会精神，根据《十二届全国人大常委会立法规划》和《国务院2014年立法工作计划》，商务部启动了《中外合资经营企业法》、《外资企业法》、《中外合作经营企业法》修改工作，形成了《中华人民共和国外国投资法（草案征求意见稿）》。

It has been raised in the third plenary session of the 18th Central Committee of the Communist Party of China (the CPC) to build up a type of new and open economic system, unify the law and regulations for the domestically invested and foreign invested enterprises, keep the policy for foreign investment consistent, transparent and predictable, reform the approval system for foreign investment, and explore the administration models regarding the national treatment for foreign investment plus negative lists. It has also been required in the fourth plenary session of the 18th Central Committee of the CPC to adapt to the deepening open-door policy, enhance the legal system for foreign investment, and promote the construction of the new and open economic system. All of these provide us a clear guide to revise the law for the three types of foreign investments. To stay in line with the theme for the third and fourth sessions of the 18th Central Committee of the CPC, and act in accordance with the law making plan of the twelfth session of the Standing Committee of the National People’s Congress, and the 2014 working plan for making regulations of the State Council, the Ministry of Commerce kick-starts the revision work of the Law for Sino-foreign Equity Joint Venture Enterprises, the Law for Wholly Foreign Owned Enterprises and the Law for Sino-foreign Cooperative Joint Venture Enterprises, which lays the foundation for the Law for Foreign Investment of the People’s Republic of China (the Draft).

我们认为，外资三法修改的基本方向是“三法合一”，制定一部统一的《外国投资法》。新时期的《外国投资法》应定位为一部深化体制改革的法，扩大对外开放的法，促进外商投资的法，规范外资管理的法。

The spokesman for the MOC considered that the reform direction for the Three Foreign Investment Laws is to merge them into one, making a unified “Foreign Investment Law”, which is intended to be a law for furthering and deepening the system reform, widening the scope open-door policy, promoting foreign direct investment, and regulating the administration of foreign investment.

——深化体制改革：草案征求意见稿改革了现行外商投资管理体制，实行准入前国民待遇加负面清单的管理模式。取消了外资三法确立的逐案审批制管理模式，对于外商投资企业合同、章程不再保留行政审批，重新构建了“有限许可加全面报告”的外资准入管理制度。外国投资者在负面清单内投资，需要申请外资准入许可；外国投资者在中国境内投资，不区分负面清单内外，均需要履行报告义务。在实施负面清单管理模式下，绝大部分的外资进入将不再进行审批。

--- Furthering and deepening systems reform: The Draft has revised the current administration system of foreign investment, adopted the administration mode for national treatment and negative lists prior to the admission of foreign investment, abolished the case-by-case approval mode as laid down by the Three Foreign Investment Laws, repealed the administrative approval on the agreement and articles of association for the foreign investment enterprises, rebuilt an administrative system that provides foreign investment with a limited license and full reporting. Where foreign investment enters into industries or sectors on the negative lists, approval is required. Where foreign investors invest in China, they are required to submit reports irrespective of whether or not the investment projects fall within the negative lists. Most of the foreign investment need not obtain administrative approval under the negative list administration regime.

——扩大对外开放：准入前国民待遇加负面清单的管理模式下，禁止和限制外国投资者投资的领域将以清单方式明确列出，清单以外充分开放，外国投资者及其投资享有不低于中国投资者及其投资的待遇。下一步，我们将严格按照构建开放型经济新体制、实施高水平对外开放的要求，进一步放宽外资准入。

--- Open wider to the Outside: Under the administration mode for national treatment plus the negative list prior to admission, the administration shall provide lists specifying the sectors that prohibit or restrict foreign investment. The sectors that are not on the negative lists will be fully open to foreign investment, in respect of which the foreign investors and their investment shall receive treatment on no less favorable terms than that for Chinese investors. Next, the Chinese government shall, to the strictest extent, fulfill the requirement for building up an open and new economic system, implementing high level opening up for foreign investment and further relaxing the restriction for foreign investment.

——促进外商投资：强化政府在投资促进方面的职能，是当前世界各国外资立法和政策的一个新趋势。草案征求意见稿规定了国际投资促进的政策措施，提升国际投资促进专业化水平；加强对外国投资者及其投资的权益保护；强化了外国投资投诉协调处理机制。

--- Promoting foreign investment: Strengthening the government’s function in promoting investment is a new trend for making laws and formulating policies of foreign investment by the governments all over the world. The Draft sets out the policies and measures for the promotion of international investment, raises the professional standards for the promotion of international investment, strengthens the protection of interests of foreign investors and foreign investment, and the mechanism for handling complaints and mediation relating to foreign investment in China.

——规范外资管理：在放宽外资准入、促进市场在资源配置中起决定性作用的同时，草案征求意见稿进一步完善了外资准入管理制度、国家安全审查制度、外资促进和保护制度，并纳入对外国投资者、外国投资企业的投资和经营行为监督检查的内容，强化事中事后监管。

--- Standardizing foreign investment: On the one hand, the Draft relaxes the control over entry into China by foreign investment, enhances the dominance of the market in the allocation of resources. On the other hand, the Draft goes further to improve the administrative system for entry by foreign investment, the vetting system for national security, the system for the promotion and protection of foreign investment, includes the supervision and inspection over the investing and business operations of the foreign investors and foreign investment enterprises, and strengthens the supervision during and after the events.

草案征求意见稿不再将外商投资企业的组织形式和经营活动作为主要规范对象。就外商投资企业的组织形式和经营活动，按照内外资一致的原则，统一适用《公司法》等法律法规。草案征求意见稿也不再区分企业类型分别适用不同的规则，无论外国投资者设立何种类型的企业、通过何种方式在中国投资，原则上均适用统一的《外国投资法》。

The Draft no longer targets the organizational structure and business operation for the foreign investment enterprises as the subject for administrative regulation. The organizational structure and business operations shall all be placed within the confines of the Company Law in accordance with the equality principle for domestic and foreign funded investment. The Draft no longer makes a distinction between the types of enterprises in the application of administrative rules. The Foreign investment Law in principle shall apply to all foreign investors, irrespective of the types of enterprises the foreign investors set up and the ways they invest in China.

孙继文指出，党的十八届四中全会提出“深入推进科学立法、民主立法”。修改外资三法、制定《外国投资法》这项工作涉及面广，问题较为复杂，社会关注度高。商务部欢迎社会各界对此予以关注，并提出宝贵意见。我们将认真听取社会公众的意见，进一步完善相关法律制度设计，推动形成一部既符合我国经济发展阶段和基本国情、又顺应国际通行规则发展要求的外国投资基础性法律，为外国投资创造更加稳定、透明、可预期的法律环境。

Mr. Sun pointed out that it was proposed in the fourth plenary session of the 18^th Central Committee of the CPC to make a greater effort to enact laws in a scientific and democratic manner. The amendment to the Three Foreign Investment Laws and turning them into the “Foreign Investment Law” has impact across the board. It is considered to be a complicated issue and of high concern for the society members. The Ministry of Commerce welcomes the concern from every sector in the society and the opinion the members of the society raise. He said that the administration will collect feedback from the public in order to further enhance the design for the relevant legal system, make a fundamental law for foreign investment that aligns with the economic development and situation of our country and the international practices, and forges a legal environment that is more stable, transparent and predictable for foreign investment.

A Courtesy Translation by

China Tax & Investment Consultants Ltd

www.china-tax.net