The Foreign Investment Law & its Impacts on WFOEs - A Video
Since March 2019, when the FIL (Foreign Investment Law) was first enacted, many interpretations have been suggested. Launched in January 2020, the new FIL is already a fait accompli, and is being practically implemented.
In a nutshell
The new FIL is a merge between 3 previous foreign investment regulating laws (that by now have become abolished). At its core, the law equals the legal status of foreign companies in China to the status of local companies, in order to send a positive message to the world and attract more foreign companies and investments into China.
Immediate implications for WFOEs
Watch an interview with PTL Group’s legal partner Zach Lichtblau, a principal consultant at Bonnard Lawson Shanghai, who spoke about the topic in our Partners Network event in August. Thank you Zach!
Click PLAY to learn about:
The end of the old corporate regime
The National Treatment principle
The Negative List & the list of encouraged industries
And more!
If you are considering a company registration in China, you should be excited about the new law. The law signals the Chinese government’s intent to level the playing field for foreign investment in the country, and therefore provides some hope among WFOEs and foreign investors. However, it is worth noting that the law also has a lot of gaps and raises numerous questions that will be answered with time.
Check out more tips and regulatory updates in the Guide to WFOE establishment & management
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