More on Forex Aspects of a Changing Investment and M&A Climate

Fangda Partners

The new Acquisition of Domestic Enterprises by Foreign Investors Tentative Provisions  (外国投资者并购境内企业暂行规定) (effective April 12 2003, see page 27 for a full translation) constitutes one of the most important developments in foreign direct investment law since the last revisions of the Sino-foreign Equity Joint Venture Law  (中外合资经营企业法) , the Sino-foreign Cooperative Joint Venture Law  (中外合作经营企业法) and the Wholly Foreign-owned Enterprises Law (外资企业法). The March 3 2003 Issues Relevant to Improving Foreign Exchange Control on Foreign Direct Investment Circular  (关于完善外商直接投资外汇管理工作有关问题的通知) (the Circular, effective on April 1 2003) looks to support the developments in foreign direct investment law and clarify some issues in this area.

The Circular is a comprehensive regulation covering numerous aspects of foreign exchange control in foreign direct investment, and contains some new points, which may facilitate further foreign direct investment.