It is proposed by many departments that the contract of foreign-funded enterprises shall not be broken on the basis of the change of government term

category:Global
 It is proposed by many departments that the contract of foreign-funded enterprises shall not be broken on the basis of the change of government term


Recently, the Ministry of justice, the Ministry of Commerce, the development and Reform Commission and other departments studied and drafted the regulations for the implementation of the law of the peoples Republic of China on foreign investment (Draft for comments), which mentioned that local peoples governments at all levels should not default on foreign investors and foreign-invested enterprises for reasons other than national interests and social and public interests, such as the adjustment of administrative divisions and the change of government term Breach of contract.

The draft for comments further details the relevant provisions on forbidding the use of administrative means to force foreign investors and foreign-funded enterprises to transfer technology, and on the strict protection of trade secrets of foreign-funded enterprises known by administrative organs and their staff in the course of performing their duties.

In addition, it is required that the establishment of normative documents involving foreign investment should be subject to legitimacy review and fair competition review.

According to the draft, local peoples governments at all levels and their relevant departments shall fulfill the policy commitments made to foreign investors and enterprises with foreign investment and all kinds of contracts concluded in accordance with the law. Except for national interests and social public interests, they shall not change the policy commitments and contract agreements, adjust administrative divisions, change the term of office of the government, adjust institutions or functions, and take relevant responsibilities Breach of contract by reason of replacement of person.

In addition, the draft makes clear provisions on the establishment, responsibilities and operation of foreign investment complaint mechanism.

The competent department of commerce under the State Council shall, in conjunction with the relevant departments under the State Council, establish a complaint mechanism for foreign-invested enterprises, promptly deal with the problems of foreign-invested enterprises or their investors that have a significant impact on the whole country and other major and complex problems, coordinate and improve the policies and measures for foreign investment, and guide and supervise the complaint work of foreign-invested enterprises throughout the country.

Source: responsible editor of Beijing News: Dai Wenjia, nb12498