Want China Times
By: Yen Huai-shing
In January, China issued a comprehensive draft of the Foreign Investment Law for public comment. The new law is expected to replace the existing three acts related to foreign investment. After it takes effect, the Sino-Foreign Equity Joint Venture Law, the Sino-Foreign Cooperative Joint Venture Law and the Wholly Foreign-Owned Enterprise Law will be abolished.
Under the new law, Taiwanese investors in China will be perceived as quasi-foreign investors and will have to abide by the new legislation and be treated the same as foreign investors from other countries.
After the implementation of the new law, China will change the way in which it supervises and handles foreign investment. For example, apart from a list that will specify the businesses in which foreign investors are not allowed to engage without restrictions, foreign firms will not need to seek approval in advance to do business under a new market access mechanism. In the case of businesses covered by the list, foreign investors will still need to secure approval following a review process by the Chinese authorities. [FULL STORY]