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How the FIL Affects New Investments,
WFOEs, CJVs, and EJVs
Over the past year, China has faced a deluge of international
criticism over its treatment of foreign businesses and the
perceived slow pace of market opening.
This criticism manifested itself most visibly when the US
slapped tariffs on billions of dollars' worth of Chinese goods,
sparking a trade war aimed at combating
China's alleged unfair economic practices.
While the US has been the most vocal and aggressive in
criticizing China's economic policies, governments, business
leaders, and business groups from Japan to the European Union have
expressed similar grievances.
Looking to restore the confidence of foreign investors, China
passed a new Foreign Investment Law in March this year.
The law establishes a new framework to govern foreign investment
in China and addresses a number of common concerns among overseas
businesses.
Critics, however, have questioned the extent to which the law
addresses these issues in practice, pointing to the law's at
times broad and vague language.
To make sense of the changes, this issue of China Briefing
magazine offers a comprehensive analysis of China's new Foreign
Investment Law.
We begin by introducing the main features of the law, including
an overview of the key changes and what is still missing.
Next, we provide a deep-dive analysis of important provisions in
the law and how they should be interpreted.
Finally, we evaluate what the impacts of the Foreign Investment
Law are for foreign businesses operating in China and what tangible
steps they should take in response.
This magazine is based on more than 25 years of experience
helping foreign investors navigate the Chinese market. We hope we
can be of assistance in helping your business adapt to China's
new foreign investment landscape.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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On 15th October 2019, the Ministry of Finance, Government of India, notified the provisions of Sections 139, 143 and 144 of the Finance Act, 2015 (the "Notified Sections").
In a quiet mid-October surprise, nearly four and a half years after the passage of the Finance Act 2015 (20 of 2015)
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