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MOFCOM studies revision of Foreign Investment Law

By Ding Qingfen (chinadaily.com.cn)
Updated: 2009-03-20 11:45

The Ministry of Commerce (MOFCOM) is mulling over revising the Foreign Investment Law to adjust its supervision and decision power and to specify and standardize relevant rules and regulations.

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The MOFCOM will soon appoint teams to visit and inspect the Yangtze River Delta region and Pearl River Delta region, which traditionally absorb the largest volume of foreign direct investment (FDI) nationwide, for a feasibility study on the law revision.

The revision is expected to cover loosening restrictions on FDI, authorizing provinces to approve FDI, and specifying regulations on mergers and acquisitions launched by foreign entities.

Insiders say the Chinese government's jurisdiction on FDI-related issues is too wide and cannot make timely responses to increasing FDI proposals. Some have also said that the regulations listed in the three sub-laws under the Foreign Investment Law are overlapping.