The Shanghai municipal government has just passed a resolution for the full implementation of China’s new foreign investment law, making it the first local authority to do so.
On 23 May the Standing Committee of Shanghai’s 15th People’s Assembly voted to approve the “Municipal Standing Committee Decision Concerning Several Issues in Relation to the Full Implementation of the ‘People’s Republic of China Foreign Investment Law'” (市人大常委会关于贯彻实施<中华人民共和国外商投资法>若干问题的决定), which will come into effect on 1 January 2020.
Shanghai has become the first local government to approve the full implementation of the Foreign Investment Law, with other jurisdictions expected to follow rapidly in its wake, as well as launch complementary regulations.
The decision entails the cancellation of the preceding “Shanghai Municipal Foreign Invested Enterprise Examination and Approval Regulations” (上海市外商投资企业审批条例) that were first drafted in 1996, while stipulating that the provisions of any local laws or regulations that conflict with the Foreign Investment Law be suspended.
Wu Qi (吴琦), a senior researcher with the Pangu Zhiku think tank (盘古智库), said that ensuring the successful implementation of the new Foreign Investment Law will involve making corresponding adjustments to local laws and regulations.