Chinese Premier Issues New Regulations for Foreign Investment

by

Ganpat Singh Chouhan

Chinese Premier Issues New Regulations for Foreign Investment

Beijing, June 1: Chinese Premier Li Qiang has recently signed an ordinance from the State Council, releasing new regulations concerning foreign investment. These regulations will take effect on July 1, 2026.

The aim of these regulations is to promote a high level of openness, encourage the high-quality development of foreign investment, effectively manage investment activities, protect the legitimate rights and interests of investors, and safeguard national sovereignty, security, and developmental interests. The regulations consist of a total of 34 articles, which include the following key provisions.

First, clarification of the application scope. These rules, related to foreign investment, will apply to activities where Chinese investors obtain rights and interests in enterprises, assets, or related matters located in other countries or regions, whether directly or indirectly. Investments made by Chinese investors in Hong Kong, Macau, and Taiwan will also be governed by these regulations.

Second, determination of overall requirements. The concept of comprehensive national security will be applied to foreign investment activities. Additionally, the management and service system for foreign investment will be improved, enhancing the quality and level of investments.

Third, improvement of comprehensive services. The state will strengthen the comprehensive foreign service system. Provincial governments and their relevant departments will also enhance their public service capabilities and service levels.

Fourth, promotion of effective management. Regulatory measures will be refined, and a classified and tiered monitoring system will be implemented throughout the entire process. Furthermore, while strengthening risk control and prevention, the scientific and secure nature of foreign investment will be enhanced.

Fifth, strengthening the security of foreign investment. Relevant departments of the Chinese State Council will bolster monitoring, early warning, and risk assessment systems. Investors will also receive necessary guidance and support to protect against security risks.

(Source: China Media Group, Beijing)

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