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Li Keqiang signs the State Council order promulgating the "Implementing Regulations of the People's Republic of China on Foreign Investment Law"

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Xinhua News Agency, Beijing, December 31. The Premier of the State Council, Li Keqiang, recently signed a State Council Order promulgating the "Implementation Regulations of the People's Republic of China on Foreign Investment Law" (hereinafter referred to as the "Implementation Regulations"), which will be implemented from January 1, 2020.

The Party Central Committee and the State Council attach great importance to the implementation of the Foreign Investment Law of the People's Republic of China (hereinafter referred to as the Foreign Investment Law), and clearly require the establishment of supporting regulations, refinement of the major systems identified by the law, formation of specific operational rules, and continuous optimization of the foreign investment environment. As a supporting regulation of the Foreign Investment Law, the Implementing Regulations strictly implement the legislative principles and purposes of the Foreign Investment Law, more prominently promote and protect the main tone of foreign investment, enhance the operability of the system, and ensure the effective implementation of the law.

The first is to encourage and promote foreign investment. The "Implementation Regulations" propose to protect the legitimate rights and interests of foreign investment, standardize the management of foreign investment, continue to optimize the environment for foreign investment, and promote higher levels of opening up. At the same time, issues such as the joint investment of Chinese natural persons and foreign investors, the formulation and adjustment procedures of the negative list of foreign investment access, and the application of laws for foreign-invested enterprises to invest in China were made clear.

The second is to refine specific measures to promote foreign investment. The "Implementation Regulations" stipulate that foreign-invested enterprises shall equally apply relevant national policies to support enterprise development, participate in standard-setting and government procurement activities on an equal basis according to law, and establish and improve a foreign-invested service system.

The third is to strengthen the protection of foreign investment. The "Implementation Regulations" detailed the foreign investment investment compensation, prohibiting the use of administrative means to force foreign investors and foreign-invested enterprises to transfer technology, protect trade secrets, and work mechanisms for foreign-invested enterprise complaints. The specific content and requirements of the policy commitments referred to in Article 15.

The fourth is to regulate foreign investment management. The "Implementation Regulations" specify the implementation mechanism of the negative list of foreign investment access, and specify the foreign investment enterprise registration and foreign investment information reporting system.

In addition, the "Implementation Regulations" detailed the current transitional arrangements for the organization of existing foreign-invested enterprises, and kept the rights and obligations of the parties stable. It clarifies the application of laws for Hong Kong, Macao and Taiwan investment and maintains the continuity and stability of Hong Kong, Macao and Taiwan investment policies. It also stipulates corresponding legal responsibilities for violations of these regulations by the government and relevant departments and their staff.

After the "Implementation Regulations" came into effect, the "Implementation Regulations of the Law of the People's Republic of China on Sino-foreign Joint Ventures", "Interim Provisions on the Duration of Sino-foreign Joint Ventures", "Implementation Rules of the Law of the People's Republic of China on Foreign-funded Enterprises", The Law Implementation Regulations shall be repealed at the same time.

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