Update on Foreign-Invested Partnerships in China - FIP Measures Take Effect; First FIP Registered; Implementing Rules and Policies Clarify Scope of Important New Vehicle for Foreign Investment

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This week heralds the official launch of a new structure for foreign investment — the foreign-invested partnership (“FIP”) — with the long-awaited Administrative Measures on the Establishment of Partnership Enterprises in China by Foreign Enterprises or Foreign Individuals; the “FIP Measures”)1 and their implementing rules, Regulations for the Administration of the Registration of Foreign-invested Partnership Enterprises; the “FIP Registration Regulations”)2 both coming into effect on March 1, 2010 and local media already reporting the registration of China’s first FIP.3

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