London Daily

Focus on the big picture.
Thursday, Jul 10, 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

0:00
0:00
Close
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
×