Local foreign investment regulations to be revised

Shanghai’s legislators are preparing local regulations in line with the new Foreign Investment Law, which is to take effect next year.

Shanghai People’s Congress has authorized the local government to formulate rules, regulatory documents and policies to promote, protect and manage foreign investment.

Ding Wei, director of the legislation commission of the standing commission of Shanghai People’s Congress, said that the management of foreign investment plus the negative list approach were largely the outcome of a successful trials in the China (Shanghai) Pilot Free Trade Zone.

Existing foreign investment regulations and rules on the local level are being revised and those not in accordance with the new national law will be annulled. Shanghai’s own regulation on foreign investment, which was introduced in 1996, will be annulled on January 1 next year.