GC Agenda China
In the January edition of GC Agenda China (subscription required), Morrison & Foerster partner Paul McKenzie shared his opinions on the revised draft of the Foreign Investment Law, which was circulated by the National People's Congress (NPC) Standing Committee for public comment on 26 December 2018.
According to Mr. McKenzie: "The new draft Foreign Investment Law is shorter and simpler than the 2015 draft. Some provisions of the prior draft have been dealt with since in other legislation, and no longer need to be addressed. But
some controversial provisions, most notably those that might have shut down the VIE structure, have been omitted. The policy drivers are different and the evolving trade war with the US may be informing a more investor-friendly approach short term. Legislators may seek to re-introduce some of the more controversial provisions of the 2015 draft at a later stage."