Legislation roundup: FDI reporting, antitrust and export control
January 09, 2020 | BY
Susan MokA new foreign investment reporting system is established, draft Anti-Monopoly Law expands definitions on monopolistic agreements and market dominance, and factors are listed for reviews on export of controlled items.
FDI
Ministry of Finance and State Administration for Market Regulation, Measures for the Reporting of Investment Information by Foreign Investors
Where a foreign investor directly or indirectly conducts investment activities in China, the foreign investor or the foreign-invested enterprise shall submit investment information to the competent commerce department.
A foreign investor is required to submit an initial report including information such as the enterprise's basic particulars, information on the investor and its de facto controller, and investment transaction information when establishing a foreign-invested enterprise or acquiring a non-foreign-invested enterprise in China.
Further reading
Antitrust
PRC Anti-Monopoly Law (Draft Amendments) (Draft for Public Comments)
The Draft adds these two articles expanding the coverage on monopolistic agreements.
Business operators are prohibited from entering into monopolistic agreements with each other (Article 14).
Business operators are prohibited from organizing or assisting other business operators in entering into monopolistic agreements (Article 17).
More factors are also included when determining market dominance. When determining whether a business operator in the internet sector has a dominant market position, consideration shall also be given to factors such as the network effect, economy of scale, lock-in effect, and capacity to master and process relevant data.
Further reading
Trade
PRC Export Control Law (Draft)
The state export control department shall comprehensively consider the following factors when reviewing the application of an exporter to export a controlled item, and render its decision to permit or deny such export:
(1) international obligations and commitments made to foreign parties;
(2) national security;
(3) type of export;
(4) the degree of sensitivity of the item;
(5) the export destination country or region;
(6) the end user and end purpose; and
(7) the exporter's credit record.
Further reading
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