Lawyers agree that China’s Ministry of
Commerce’s (Mofcom) recent consultation on its
foreign direct investment (FDI) regime is a game-changing
reform that will facilitate foreign investment.
On January 19, Mofcom introduced far-reaching
regulations that could change China’s foreign
investment environment. While most have focussed on its
variable interest entity (VIE) rules, the draft rules
streamline China’s morass of foreign investment
In a speech following the consultation’s
release Mofcom spokesman Sun Jiwen said that the previous laws
had served China well. But change is needed. "With development
and evolution of domestic and foreign situations, the existing
three foreign investment laws, however, can hardly meet the
requirements for further deepening the reform or opening up in
an all round manner," he said.