China resolves to stop illegal withdrawal of foreign investors

Many foreign investors in the PRC have started to withdraw their investments in China – some have even fled or abandoned their assets. The government has issued guidelines to protect domestic parties when situations such as these come up.

The lengthily-titled Working Guidelines on Cross-border Pursuit of Liability and Initiation of Legal Action by Relevant Interested Parties in Connection with Abnormal Withdrawal from China of Foreign Investors were issued by four ministries and restate what Chinese parties and institutions can do in the event of abnormal withdrawal of foreign funds from China.

Li Haifeng, partner of Global Law Office, says that the Working Guidelines remind people of the availability of such means, while discouraging foreign investors who are considering the option of abnormal withdrawal.