To eliminate poverty and improve basic living standards, China opened its door to the world in the late 1970s. With decades of economic reform, China has surprised the world to become the second-largest economy. The success of China’s development has proven China’s rise is not just a fluke, but an economic miracle. Chinese people believe that ideological differences should not be a barrier to economic development and business cooperation.

 

While China has played a significant role in the global economy, its foreign direct investment (“FDI”) policies have dramatically shifted from simple “borrowing” and “cooperative” to today’s “more selective” and “go-out” approach. By far China has opened most of its industrial sectors to foreign investors and pledges to open even more to encourage and attract foreign investment. However, some foreign investors feel they are receiving “less than advertised” treatment due to national treatment and removal of incentives offered in the past. Now, international businesses established in China have encountered stronger competition from rapidly maturing domestic companies. The Trade War, the global pandemic sequelae, and “economic competition” have also subtly if not dramatically influenced China’s FDI policies.

 

Our legal advice on China's FDI policies and market entry strategies starts by helping clients to understand China’s legal system and policy/regulatory requirements which are updated from time to time. We help clients plan their business strategies by understanding the regulatory environment, conducting due diligence, selecting entity forms, searching for business locations and business partners (if necessary), and determining organizational and other structural compliance matters. We use legal expertise to guide our clients to success in China market.

 

Our Services in FDI and business transactions include:

 

• FDI policy advising

• Due diligence

• Business permits and licenses

• Environmental policy evaluation

• Business formation and corporate governance

• Business structure and negotiation

• Land negotiation, acquiring and/or premise leasing

• Merger & acquisition, equity transfer

• Employment and incentives

• IP protection strategies and planning

• Services and licensing contracts

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If you have any questions related to China’s FDI policies or any legal matters concerning your business in China, please contact us today to learn more about how we can help.