The Ministry of Justice ("MOJ") recently issued the Implementing Regulations of the Foreign Investment Law of the People's Republic of China (Draft for Comments) (the "Draft for Comments") to seek opinions from the entities concerned and people from all walks of life. Comments solicitation has ended by now.

The Draft for Comments primarily expounds on the basic issues on foreign investment, promotion of foreign investment, protection of foreign investment, administration of foreign investment, the transitional arrangements regarding organizational forms of existing foreign-invested enterprises and the application of law to investment made by investors from Hong Kong, Macao and Taiwan. Among others, the Draft for Comments stipulates that a foreign-invested enterprise may apply for loans from financial institutions or seek financing by other means, through publicly offering stocks or corporate bonds within or outside of China according to law, or by issuing other financing instruments in a public or non-public manner. The Draft for Comments also provides that China establishes the system of punitive damages for intellectual property infringement, propels setting up the swift and coordinated intellectual property protection mechanism, improves the diversified intellectual property dispute resolution mechanism and the assistance mechanism for enforcing intellectual property rights, and ramps up efforts to protect intellectual property rights held by foreign investors and foreign-invested enterprises.

(Source: Ministry of Justice)