“Fork in the Road” (“FITR”) clauses, included in significant investment treaties, “provide that the investor must choose between the litigation of its claims in the host State’s domestic courts or through international arbitration and that the choice, once made, is final”.[1] Hence, the fork in the road clauses result in that
Investment
Exit Mechanism for Foreign Investor by Dissolution of FIEs
Foreign investor seeking to exit from its foreign invested enterprises (including joint venture companies and wholly foreign owned companies) (“FIE”) in China may consider transferring all its shares in the FIE to others, requesting the FIE to return capital by reducing the FIE’s registered capital or voluntary dissolution of the FIE. This article…
China Adopts Foreign Investment Law March 2019
Bo Hu
On March 15, 2019, China’s national legislature, the National People’s Congress passed the Foreign Investment Law (the “Law”), a landmark legislation that will provide stronger protection and a better business environment for foreign investors. The Law will take effective on January 1, 2020. Upon its effectiveness, the Law will replace China’s current foreign…
An Overview of the FDI Regulations Promulgated by China in 2018
Simon Li, Susie Shi
In the Year 2018, China has promulgated a series of new regulations and policies in relation to foreign investment, which indicates the government’s determination to further expand market opening-up, attract foreign investment and inject new impetus into market competition and innovation.
Set forth below is a timeline of the major foreign…
Foreign Investment: China Issued New Incentive Policies on Foreign Investment
These incentives are clearly response of the Chinese government toward the exodus of foreign investment in recent years. We see signs of relaxed control over the commercial activities in general, stronger intention to protect IPR, and national treatment to FIEs in areas like R&D. However it is more accurate to say these policies are currently…
A Review of China’s Reforms to FDI Administration Regime in 2016
Authored by Simon Li (lixiameng@anjielaw.com) and Bo Hu (hubo@anjielaw.com) at AnJie Law Firm
Over the Year 2016, the Chinese government has overhauled its regime of administration over foreign direct investment (“FDI”) by promulgating a series of amendments to laws and new regulations to introduce a record-filing process to replace the pre-approval process, …
China Purports to Adopt New Measures to Boost Foreign Investment in 2017
Authored by Bo Hu (hubo@anjielaw.com) and Simon Li (lixiameng@anjielaw.com) at AnJie Law Firm
Since September of 2016, the Chinese government has adopted a series of measures to reshape its FDI regime, signaling its determination to strengthen efforts to attract more foreign investments in the coming years. As a significant move, the State …
China Loosens Outbound Investment Control
Authored by REN Gulong(rengulong@anjielaw.com) at AnJie Law Firm
The State Council, China’s cabinet, released on 18 November 2014 a List of Investments That Requires Governmental Approval (2014 version) dated 31 October 2014 (“2014 List”). The 2014 List provides a much shorter list of investments projects needing government approval.
In the 2014 List, except for investments in sensitive countries or regions or investments in sensitive industries, which are still subject to approval by National Development and Reform Commission (“NDRC”), no governmental approval will be required for any outbound investment (“ODI”) by Chinese investors. Filing with NDRC will be required for any outbound investment above US$ 300 million
Dealing with Post-investment Disputes in China
Authored by Jeremy Dai (jeremydai@anjielaw.com), George Zhang (zhangjianzhou@anjielaw.com)
Q:What are the typical post-investment disputes in China?
A:In our experience, post-investment disputes in China could be classified as the following categories:Continue Reading Dealing with Post-investment Disputes in China
Insurance Funds in China Expand toward Equity Investments
Recently it was reported in the financial news that the China Insurance Regulatory Commission of the State Council (CIRC) had allocated RMB200 billion to carry out a pilot investment program for funds held by insurance companies. The RMB200 billion has been equally invested across infrastructure projects and other equity investments.
Continue Reading Insurance Funds in China Expand toward Equity Investments