What Will Become of Foreign Investment in China under the new Record-filing System?
On 30 July 2017, a beautiful sunny Sunday in midsummer, without expectation the Ministry of Commerce (“MOFCOM”) issued two documents relating to foreign investment in China. This was only two months after MOFCOM released draft measures. The inclusion in the record-filing system of foreign mergers and acquisitions not involving special access administrative measures (negative list) and related-party M&A signals that foreign investment in China has entered an era known as the “Pre-establishment National Treatment (PENT) and negative list”. Since China is taking a more open, transparent and market-oriented attitude to foreign capital, market players and participants should embrace changes and respond to challenges with an open mind. Foreign investors are encouraged to continue to increase their investment by introducing more high-end, intelligent and greener projects in China.