"China Welcomes Foreign Investment"

In the past two years, the landscape of foreign direct investment (“FDI”) in China has been changed by several newly promulgated legislations and regulations, among which are the Labor Contract Law, the Anti-Monopoly Law, the Enterprise Income Tax Law and the Measures for the Administration of Taxation on Representative Offices of Foreign Enterprises. Some provisions of those laws and regulations canceled long established preferential treatment to some foreign invested enterprises (“FIEs”), while others imposed new restrictions to FIEs. Investors started to ask the question: “Is foreign investment no longer welcomed in China?”

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