The Legislation Of Foreign Invested Enterprises Can No Longer Meet The Demand.

Pan Xuexian, deputy secretary of the National People's Congress and Deputy Secretary of the Shanghai stock exchange, and director general of the board of supervisors, submitted two suggestions on reducing the threshold for foreign investment and perfecting the laws governing foreign investment.

He believes that the current legislation of foreign-invested enterprises is not enough to meet the new requirements of international investment liberalization, which is not conducive to attracting global capital investment in China, nor reflects the requirements of domestic market economic change and global economic integration.

Pan Xuexian said that in November 9, 2016, Trump was elected president of the United States, focusing on promoting economic growth in the United States, reducing domestic taxes, adopting trade protection and encouraging industry to move back.

At the same time, our country is facing enormous pressure of capital outflow.

Therefore, in order to actively cope with the capital inflow caused by Trump's coming to Taiwan.

In order to further expand the opening to the outside world, it is suggested that the competent departments of the Ministry of Commerce and the State Administration for Industry and commerce, together with the current practice of multilateral investment cooperation and the construction of the Shanghai Free Trade Zone, suggest that the relevant laws of foreign investment be amended as soon as possible, and restrictions and controls on the establishment, operation and exit of foreign-funded enterprises should be relaxed.

Specific suggestions include: first, make clear the value target of "investment orientation".

The legal system of commercial organization, which is the core of our company law, partnership law and sole proprietorship law, has been basically complete. There is no need for special laws to regulate foreign investment enterprise laws in the form of enterprise organization. Therefore, it should be clear that its positioning is to regulate the related investment behavior of foreign investors, establish the institutional value of "investment standard", identify whether foreign capital should be regulated according to the actual source of capital and the actual controller, and whether it should be incorporated into foreign investment laws. In addition, we should follow the international rules and formulate legal provisions conducive to the inflow of overseas capital.

The two is to adopt the "simple two track" legislative mode to protect the foreign investment in the implementation of national treatment.

It is suggested to adopt the legislative mode of "simple two track system" to put the existing system into practice.

The contents of the establishment, operation, organization form, organization structure and internal operation and management of the enterprise are stripped out of the law, unified by the domestic commercial organization law, and the principle of non discrimination national treatment is implemented. The scope of the joint venture capital is extended to natural persons, and the contents of foreign exchange, taxation and the protection of laborers' rights and interests are governed by relevant domestic laws.

Three, we should draw lessons from the practice of Shanghai free trade area and reduce the entry threshold for foreign investment.

It is recommended that the relevant practices of the Shanghai free trade area be referred to in the revision of the foreign investment law.

First, the negative list management model of Shanghai free trade area can be adopted.

All sectors outside the negative list allow foreign-funded enterprises to invest in foreign investment and expand the scope of foreign investment, which is conducive to the liberalization of foreign investment.

Secondly,

The filing system is worth learning from.

The administrative examination and approval procedures for foreign-funded enterprises in the FTA are changed from the examination and approval system to the filing system, which greatly simplifies the procedures for foreign capital entry, saves time and cost for the establishment, and achieves the principle of national treatment before admission to a greater extent.

Finally, the Shanghai FTA has adopted a series of post regulatory measures for foreign-funded enterprises to achieve good results. It is suggested that the system of security review and information disclosure can be reflected in the future foreign investment law.

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