Arab Press

بالشعب و للشعب
Friday, Jun 20, 2025

Top Chinese court lays down rules to protect foreign investors

Top Chinese court lays down rules to protect foreign investors

The rights of foreign investors in China will be better protected with the release of a new judicial document on Friday. It instructs courts across the country to support investment contracts that do not involve the negative list contained in China's Foreign Investment Law.
In contract-related lawsuits, unless the investment sector is explicitly prohibited, courts will support foreign investors even if the other side argues that the contract wasn't approved or registered, a judicial interpretation issued by the Supreme People's Court said.

If China adjusts the negative list before a verdict is determined and allows foreign investment in a specific sector, investment contracts in that sector should also be deemed valid, the new rule said.

The judicial interpretation of the Foreign Investment Law will take effect on Jan 1, concurrent with the law. While the law was adopted by the country's top legislature in March, many argued that it was too general to be carried out in practice.

The top court said its new rule will guide the proper implementation of the Foreign Investment Law nationwide, and offers equal protection for domestic and foreign investors.

"We'll adopt a more open and inclusive attitude when dealing with such lawsuits to protect the rights of foreign investors and offer a sound legal environment for the country's further reform and opening-up," said Gao Xiaoli, deputy head of the No 4 Civil Division of the Supreme People's Court.

She said the new interpretation could been seen as "a crucial move to help the country attract more foreign investment".

The rule applies to all contracts arising from direct or indirect investment by foreign individuals, enterprises or other organizations in China, including contracts on the establishment of foreign-invested companies, new projects or the transfer of shares, property or stock rights.

However, courts will not support a contract if the investment area is on China's negative list. If it's a restricted sector, judges will have to review the detailed circumstances, the interpretation said.

"In short, we'll treat investors equally under the law, no matter where they come from," Gao said.

She said the interpretation focuses on contract validity "because about 70 percent of foreign investment disputes relate to contracts".

Luo Dongchuan, vice-president of the top court, said contracts are essential for investors and are "a primary step in international trade".

The interpretation is a signal that Chinese courts will support foreign investment contracts to the full extent the law allows, he said.

Wei Jianguo, vice-chairman of the China Center for International Economic Exchanges, said the upcoming implementation of the Foreign Investment Law is a notable step for China.

"Most foreign investment entering China will no longer need approval from local authorities," Wei said. "These new judicial rules can help fight monopolies and other forms of unfair competition in the domestic market."

Rachel Duan, president and CEO of GE Global Growth Markets, said, "We believe that an integrated Foreign Investment Law is a significant improvement and a key step forward for China as it moves toward further openness in legislation.

"In recent years, we have been pleased to see that the Chinese government has given consideration to the development needs of different market entities in China. By constantly deepening reform in free trade zones, establishing and improving the negative list, reforming and streamlining regulations on foreign investment and adopting a service-provider level of awareness, the government has given strong support to foreign companies."
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Saudi Arabia Faces Uncertainty Over Succession After Mohammed bin Salman
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Majority of French Voters View Macron's Presidency as a Failure
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Businessman Mauled by Lion at Luxury Namibian Lodge
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
×