On July 28, a nationwide version of the negative list of industries for foreign investment was formally implemented, marking a new era for foreign investment supervision in China.
In recent years, the PRC government has made several major adjustments to the foreign investment supervision system. The focus of supervision has gradually shifted from prior approval to in-process and ex-post supervision and information disclosure through revisions to four laws related to foreign investment governance ("Law of the People's Republic of China on Wholly Foreign-owned Enterprises , Law of the People's Republic of China on Sino-Foreign Equity Joint Ventures, Law of the People's Republic of China on Sino-Foreign Cooperative Joint Ventures, Law of the People's Republic of China on the Protection of the Investments of Taiwan Compatriots") and the release of the nationwide version of the negative list, as well as continuing commercial system reforms. These changes facilitate the marketization and standardization of the foreign investment management system, which will benefit foreign investors and foreign-invested enterprises. At the same time, these changes also raise new requirements for legal practitioners. Understanding and adapting to the new regulatory requirements while mastering the key points of this new stage have become issues for every in-house counsel.
Recently, Han Kun Law Offices, together with Wolters Kluwer, held a seminar entitled "Overview of Recent Foreign Investment Supervision Reforms, with Key Analysis of the Negative List of Industries for Foreign Investment". Ms. Jun Li, a partner at Han Kun, chaired the seminar and gave a presentation. She summarized the recent reforms to the foreign investment supervision system and proposed suggestions to in-house counsels for how to approach the new regulatory model.
During the first half of the seminar, Ms. Li gave introduced the latest key topics for foreign investment supervision system reforms, namely the developments and practices regarding the new negative list. She discussed the main trends in reforming the current foreign investment regulatory model, important areas for further expanding access to foreign investment, the development of and how to use the negative list, as well as the specific content, characteristics and practices related to the foreign investment filing system.
During the second half of the seminar, Ms. Li introduced the reforms to the commercial system and the opportunities and challenges under the new regulatory model. Specifically, she analyzed the measures and practices related to commercial system reforms, such as separating operating permits and business licenses, merging five different required business certifications into one certificate, reforming the residence and name registration systems, and the introducing a credit disclosure and credit restriction system. She also discussed the regulatory focus under the new in-process and ex-post supervision model, and the key points regarding the manner of supervision and corporate compliance.
The seminar attracted more than 150 attendees from various well-known enterprises and institutions, such as CapitaLand, Hua Tai Rui Lian Fund, Schneider Electric, Nikon, Samsung, Hyundai Motor, Shell, Volvo, Carrefour and the China Council for the Promotion of International Trade. The seminar proved to be a resounding success.
