POST EVENT - The New Foreign Investment Law in China

Dear Members and Friends,

In cooperation with Chiomenti Law Firm, the China-Italy Chamber of Commerce (CICC) organized three seminars on “The New Foreign Investment Law in China”.

The seminars were held in Shanghai, Beijing and Guangzhou on May 20^th, 22^nd and 23^rd, respectively.

CICC Chairman, Mr Davide Cucino, and CICC Board Members, Ms Alessandra Vismara and Mr Massimiliano Guelfo, welcomed the speakers from Chiomenti Law Firm, and presented the topic of the event.

The Foreign Investment Law (FIL) approved on March 15^th, 2019 was the outcome of four years of discussion within the Chinese legislative body and will come into force starting from January 1^st, 2020.

In the first session, Mr Gianluca D’Agnolo and Mr Sergio Scanu illustrated the contents of the FIL in terms of definitions, protection and management of investment.

The general guidelines outlined in the FIL address many questions about China often raised in the international arena: from technology transfer to Intellectual Property Rights, from the information system to the availability of complaint mechanisms.

In the second session, Ms Sara Marchetta discussed the possible impacts of the new law on the various components of the foreign investment system, focusing on prospective changes in terms of governance for existing or soon-to-be Joint Ventures.

The FIL repealed the special legislation currently regulating Foreign Invested Enterprises (FIEs), and while the law does not drop the differentiation between FIEs and domestic companies, the former will be subject to the company laws and regulations which already apply to the latter.

During the panel sessions and Q&As the speakers addressed the issue of the ‘open points’: the FIL is a programmatic piece of legislation and its interpretation and implementing rules will be work in progress for Chinese investment agencies in the next few months.

The seminars were followed by networking receptions.

CICC wishes to thank Chiomenti Law Firm and our esteemed guests for their contribution and participation.

Best regards,

CICC Team