Wholly Foreign Owned Enterprise

China issues Draft Foreign Investment Law transforming foreign investments regime

China’s Ministry of Commerce released a draft of a new Foreign Investment Law for public comment on January 19, 2015. If the Law becomes adopted, it will have a strong impact on the regime for foreign investment in China; it will reduce barriers to foreign investments, enhance transparency and control the regulations in restricted industries.

Overview of the major changes

Investing in China: Be careful about the Variable Interests Entities

About a half of Chinese companies listed in NYSE and NASDAQ are using Variable Interests Entities so as to avoid the restrictions over foreign investments. While they are a very good way for foreigners to benefit from Chinese companies’ rapid growth, major risks loom, threatening foreign investors’ ability to exercise their shareholding rights on the Chinese company. In this article, S.J.Grand offers you an overview of the VIE’s advantages and drawbacks.

Updates on Shanghai Free Trade Zone

After 8 months since its launch, in September 2013, the much-acclaimed FTZ is now raising more and more concerns about its effectiveness and key role in fostering trade and providing concrete measures for it. Many innovations still seem more theoretical than pragmatic. If in the very first months after its launch this could still leave space to the ambition and optimism of government officials now this mood is starting to creek under the growing urgency for more concrete implementations.

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