China’s Proposed Foreign Investment Law

On January 19, 2015, China’s Ministry of Commerce (“MOFCOM”) published for public comment a draft of the proposed Foreign Investment Law (the “Draft FIL”). In addition, MOFCOM released an explanatory note on the Draft FIL (关于《中华人民共和国外国投资法（草案征求意见稿）》等问题的说明) (the “Note”).

The Draft FIL contains 11 chapters and 170 articles, while the Note summarizes the main content of the Draft FIL, including (1) the new definition for “foreign investors” and “foreign investments”; (2) market access administration; (3) national security censorship; (4) foreign-invested company reporting regime; (5) foreign investment promotion regime; (6) foreign investment protection regime; (7) coordinating complaints; (8) legal liabilities, and (9) various miscellaneous provisions.