In order to implement the “Foreign Investment Law”, the “Decision of the State Council on Amending and Repealing Certain Administrative Regulations” was announced, and administrative regulations that were inconsistent with the “Foreign Investment Law” were cleaned up, including amendments to some provisions of 22 administrative regulations. From 2020 Effective on November 29:
China no longer classifies foreign-funded enterprises in the form of Sino-foreign joint ventures and cooperation
Source: State Council
Time: December 21, 2020
In order to implement the “Foreign Investment Law”, the State Council recently issued State Council Order No. 732, promulgating the “Decision of the State Council on the Amendment and Repeal of Certain Administrative Regulations” to sort out administrative regulations that are inconsistent with the “Foreign Investment Law”, including the 22 administrative regulations. Part of the clauses of will be revised and will come into effect on November 29, 2020. The main changes include:
- In accordance with the actual situation that the establishment of foreign-invested enterprises will no longer be approved after the implementation of the “Foreign Investment Law”, the contents of the five administrative regulations concerning the establishment of foreign-invested enterprises, including the “Regulations on the Administration of Commercial Performances,” shall be revised.
- Implement the provisions of the “Foreign Investment Law” on the implementation of pre-access national treatment plus a negative list management system for foreign investment, and the “Regulations on Civil Aircraft Nationality Registration” and other six administrative regulations and “Special Management Measures for Foreign Investment Access” (Negative List) (2020 Edition)” inconsistent clauses shall be revised.
- After the implementation of the “Foreign Investment Law”, foreign-invested enterprises will no longer be classified as “Sino-foreign joint ventures”, “Sino-foreign cooperative enterprises” or “foreign-funded enterprises”, and their organizational structures and organizational forms shall be uniformly applied to the “Company Law”, “Partnership Law” and other legal provisions. Accordingly, the provisions concerning the classification of foreign-invested enterprises in 13 administrative regulations including the “Travel Agency Regulations” have been revised accordingly.
- The individual provisions of the 4 administrative regulations including the “Regulations on the Administration of Commercial Performances” concerning the implementation of the State Council’s reform of “delegation, control and service” have been revised together, the relevant approval items have been eliminated, and the approval process has been simplified. In addition, after the implementation of the “Foreign Investment Law”, foreign investors will uniformly apply the “Foreign Investment Law”, “Partnership Law” and the laws and administrative regulations related to commercial registration when establishing partnership enterprises in China, and there is no need to retain separate management methods. Therefore, it was decided to simultaneously abolish the “Administrative Measures for the Establishment of Partnership Enterprises by Foreign Enterprises or Individuals in China” (promulgated by Order No. 567 of the State Council of the People’s Republic of China on November 25, 2009).
Remarks: For extensive collection of related information for reference.