Foreign Investment Law of the People’s Republic of China

Chapter IV Investment Management

Article 28

Foreign investors shall not invest in the areas where investment is prohibited under the negative list for the admission of foreign investment .

Foreign investors shall meet the conditions set forth in the negative list for the admission of foreign investment to invest in the areas where investment is restricted under the negative list.

Management of foreign investment in the areas beyond the negative list shall be implemented in accordance with the principle of equality between domestic and foreign investment.

Article 29

If foreign investment is required to go through the approval or investment project record procedure, it shall be implemented in accordance with relevant provisions.

Article 30

If a foreign investor invests in an industry or sector where legal permission is required for investment, it shall go through relevant licensing procedures in accordance with the law.

The relevant competent department shall, in accordance with the conditions and procedures equally applied to domestic investment, review the foreign investors’ application for permission, except as otherwise provided by laws and administrative regulations.

Article 31

Forms of organization, organization structures and activities of foreign-invested enterprises shall be governed by the provisions of the Company Law and the Law of the Partnership Enterprise of the People’s Republic of China.

Article 32

Foreign-invested enterprises that engage in production and business activities shall abide by the provisions of laws and administrative regulations concerning labor protection and social insurance, and handle matters such as taxation, accounting, foreign exchange, etc. in accordance with laws, administrative regulations and relevant provisions, and accept relevant supervision and inspection carried out by the relevant departments in accordance with the law.

Article 33

If a foreign investor acquires a Chinese domestic enterprise or participates in the concentration of business operators in other ways, it shall go through the examination on the concentration of business operators in accordance with of the Anti-Monopoly Law of the People’s Republic of China.

Article 34

The State establishes a system for foreign investment information reporting. Foreign investors or foreign-invested enterprises shall submit investment information to the competent commerce departments through the enterprise registration system and the enterprise credit information publicity system.

The content and scope of the foreign investment information report shall be determined in accordance with the principle of necessity; the investment information that can be obtained through the inter-department information sharing system shall not be required to be submitted again.

Article 35

The State establishes a system of security review for foreign investment to review the foreign investment that affects or may affect national security.

The security review decision made in accordance with the law is final.