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The Concept of Foreign Direct Investment in China

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China’s Foreign-Invested Limited Partnership Enterprise

Part of the book series: China-EU Law Series ((CELS,volume 7))

Abstract

The development of China’s foreign investment laws, and the enormous influx of foreign direct investments in recent decades, have largely complemented and enhanced each other. One would not have been possible without the other. Foreign direct investment has thereby made a decisive contribution to the rebuilding of China’s legal system as a whole. Based on the benchmark definition for foreign direct investments established by the OECD, the concept of foreign direct investment in China is defined and analysed.

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Notes

  1. 1.

    Wei (2010), pp. 55–56; Mahony (2015), pp. 1–2.

  2. 2.

    Wei (2010), p. 56; Mahony (2015), pp. 1–2. Recognising the important role of FDI in China: Para. 1 Explanatory Notes on the PRC Foreign Investment Law (Draft for Comments) (中华人民共和国外国投资法 (草案征求意见稿)的说明), promulgated by the Ministry of Commerce on 19 January 2015.

  3. 3.

    OECD (2008), Para. 11, p. 17.

  4. 4.

    Yu (2006), p. 423.

  5. 5.

    OECD (2008), Para. 11, p. 17.

  6. 6.

    For example, see Article 4 Paragraph 2 EJV Law (see Sect. 3.1.2 fn. 18) and Article 18 Paragraph 3 CJV Implementing Regulations (see Sect. 3.1.3. fn. 49).

  7. 7.

    Art. 2 Circular on Issues Related to Strengthening the Administration over the Approval, Registration, Foreign Exchange, and Taxation Pertaining to Foreign-Invested Enterprises (关于加强外商投资企业审批、登记、外汇及税收管理有关问题的通知), promulgated jointly by the State Administration for Industry and Commerce; State Administration of Foreign Exchange; Ministry of Foreign Trade and Economic Cooperation and State Administration of Taxation on 30 December 2002 and effective as of 1 January 2003.

  8. 8.

    OECD (2003), p. 28; Liu (2008), p. 27.

  9. 9.

    Hübner (2014), p. 12.

  10. 10.

    ibid, p. 12.

  11. 11.

    Art. 2 Para. 3 FIL. Regarding the broader scope of application of the Foreign Investment Law, see Sect. 3.1.5.2.

  12. 12.

    OECD (2008), Para. 272, pp. 86–87.

  13. 13.

    OECD (2008), Para. 273, p. 87.

  14. 14.

    Wei (2010), p. 55.

References

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Kuntner, S. (2021). The Concept of Foreign Direct Investment in China. In: China’s Foreign-Invested Limited Partnership Enterprise. China-EU Law Series, vol 7. Springer, Cham. https://doi.org/10.1007/978-3-030-54181-1_2

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  • DOI: https://doi.org/10.1007/978-3-030-54181-1_2

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-54180-4

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