2016.09.03
James Cheng
On September 3, 3016, the National People’s Congress promulgated the Decision on the Amendment of the Law of the People’s Republic of China on Foreign-funded Enterprises and Three Other Laws (hereinafter, the “Decision”). The four laws being amended are the Law of the People’s Republic of China on Foreign-funded Enterprises, the Law of the People’s Republic of China on Sino-foreign Joint Equity Enterprises, the Law of the People’s Republic of China on Sino-foreign Joint Cooperative Ventures, and the Law of the People’s Republic of China on Protection of Investment by Compatriots from Taiwan.
The Decision primarily adds one article to each of the four laws as follows: The review and approval of matters that do not involve special administrative measures for access as imposed by the state shall be changed into administration via recordation; the special administrative measures for access as imposed by the state will be promulgated by the State Council or approved by the State Council before they are promulgated. The Decision came into effect on October 1, 2016, and the aforementioned four laws were amended per the Decision and re-promulgated. Accordingly, the Decision of the Standing Committee of the National People’s Congress on Authorizing the State Council to Temporarily Adjust the Relevant Administrative Approval Items Prescribed in Laws in the China (Shanghai) Pilot Free Trade Zone and the Decision of the Standing Committee of the National People’s Congress on Authorizing the State Council to Temporarily Adjust the Relevant Administrative Approval Items Prescribed in Laws in the Expanded Zones of the China (Guangdong) Pilot Free Trade Zone, the China (Tianjin) Pilot Free Trade Zone, the China (Guangdong) Pilot Free Trade Zone, the China (Shanghai) Pilot Free Trade Zone became void on the effective date of the Decision.