The Foreign Investment Law of the People's Republic of China (the “Law”) was adopted by vote at the Second Session of the 13th National People's Congress on March 15, 2019. This Law will be implemented as of January 1, 2020.

Encompassing 41 articles, the Law is divided into six chapters which are general provisions, investment promotion, investment protection, investment management, legal liabilities, and supplementary provisions, setting forth fundamental and definite provisions for the new legal system for foreign investment. Its major contents cover: 1. the determination of the scope of foreign investment; 2. the promotion of foreign investment; 3. the protection of foreign investment; and 4. the administration of foreign investment. According to the Law, China will adopt the administrative regime of pre-entry national treatment plus negative list for foreign investment. Where there are more preferential provisions in relation to treatment for foreign investors' entry in those international treaties and conventions that China has concluded or acceded to, such provisions shall apply. Meanwhile, foreign investors shall not invest in any field forbidden by the negative list for access of foreign investment and foreign investors shall conform to the investment conditions stipulated under the negative list for any field restricted by the negative list.

(Source: www.npc.gov.cn)