Table Of Content“This is a first-rate book on how to understand China’s new ‘Foreign Investment Law.’ In
this volume, Professor Shen reassesses a collection of key issues that shape China’s complex
regime on foreign investment, such as the major changes in Foreign Investment Law 2019,
the rise of negative list, national security review, and the interactions between domestic
and international rules. The analysis is comprehensive and thoughtful which makes this
book a most valuable and important contribution to foreign investment literature.”
Julien Chaisse , Professor of Law, City University of Hong Kong
and President, Asia Pacific FDI Network, Twitter: @jchaisse
“China has presented excellent opportunities for investment in recent decades and appears
poised to continue this trend. However, language barriers, misinformation and political
polemic can obscure judgement about investing in China. This authoritative new book
by Professor Shen offers very welcome insight and clarity in this difficult context. I am
confident that Professor Shen’s study of China’s foreign investment law will both guide
the uninitiated and enlighten China specialists for years to come.”
David Donald , Professor Emeritus of Law,
Chinese University of Hong Kong
“This book provides a timely and comprehensive analysis of China’s new Foreign
Investment Law of 2019, examining a variety of relevant issues, such as negative list,
unreliable entity list, intellectual property protection, bilateral investment treaties and
national security review. It should be compulsory reading for anyone interested in the
development and regulation of foreign investment in China.”
Robin Hui Huang , Professor of Law, Chinese University of Hong Kong
“ In this timely book, Professor Shen makes an essential contribution to our understanding of
China’s foreign investment law landscape. Professor Shen situates China’s ‘new’ investment
reforms in their proper historical context, and carefully distinguishes substantive novelty
from rebranded continuity. In clear and analytical language, Professor Shen thoughtfully
dissects key elements of China’s foreign investment law framework, making this book a
treasure-laden resource for academics and practitioners involved in navigating the Chinese
investment regime.”
M ark McLaughlin, Global Visiting Assistant Professor,
Singapore Management University
“As an integral component of China’s opening-up and economic reforms, its foreign
investment regime has undergone waves of remarkable changes. Professor Shen’s book
provides not only a comprehensive review of the regime’s evolution but also sophisticated
analysis of some of its most important elements which are under-studied and not widely
understood. This book further offers detailed discussions of China’s latest regulatory
developments in response to mounting challenges posed by foreign sanctions, which
have considerable and far-reaching implications for the future development of China’s
foreign investment regime. Faced with the pressing need to stabilize and enhance the
international economic legal order, this book provides a timely and valuable source for
academics, policymakers, practitioners, and other stakeholders.”
A ssociate Professor Weihuan Zhou , Member of the Herbert Smith Freehills China
International Business and Economic Law (CIBEL) Centre, Faculty of Law & Justice, UNSW Sydney
CHINA’S FOREIGN INVESTMENT LAW
IN THE NEW NORMAL
This book analyzes China’s new foreign investment law which came into force
in January 2020. The new law implemented sweeping changes and overhauled
China’s foreign investment law regime of the last four decades. The foreign
investment law aims to make the business environment more investor-friendly
and address some of the contentious issues between US and China in the ongoing
trade war.
The book explains how the law enhances regulatory transparency. It also
outlines the new approval process, that is the pre-establishment negative list
system which has replaced the former approval system for foreign investment
projects. The book also analyzes China’s series of anti-sanction laws.
This book will help give readers a better understanding of major changes
and benefits under the new law and will be the first of its kind looking at the
implications of this important law.
Shen Wei is the KoGuan Distinguished Professor of Law at Shanghai Jiao Tong
University Law School. He is also the Global Professor of Law at New York
University School of Law and L. Bates Lea Visiting Professor of Law at Michigan
Law School.
CHINA’S FOREIGN
INVESTMENT LAW IN
THE NEW NORMAL
Framing the Trajectory and
Dynamics
Shen Wei
With contributions by Dr. Zhang Beibei
D esigned cover image: @Getty Images
F irst published 2023
b y Routledge
4 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
a nd by Routledge
6 05 Third Avenue, New York, NY 10158
R outledge is an imprint of the Taylor & Francis Group, an informa business
© 2023 Shen Wei
T he right of Shen Wei to be identified as author of this work has been
asserted in accordance with sections 77 and 78 of the Copyright, Designs
and Patents Act 1988.
A ll rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
T rademark notice : Product or corporate names may be trademarks or registered
trademarks, and are used only for identification and explanation without
intent to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
ISBN: 978-0-367-67256-0 (hbk)
ISBN: 978-0-367-67257-7 (pbk)
ISBN: 978-1-003-13049-9 (ebk)
DOI: 10.4324/9781003130499
Typeset in Bembo
by Apex CoVantage, LLC
In deep memory of my parents
Shen Guanqun and Qian Meifang
CONTENTS
Acknowledgements xi
List of Abbreviations xiii
List of Illustrations xv
Foreword xvii
1 When Foreign Investment Meets China: Legal
Development and Legal Landscape (1978–2018) 1
2 New Bottle or Old Wine? – Major Changes in
Foreign Investment Law 2019 59
3 Negative List: A Changing Governance Model 102
4 Intellectual Property Protection in Domestic and
Bilateral Contexts 139
5 Another Hole in China’s “Great Wall of Money”?
Conceptualizing the Involvement of Foreign
Investments in the Chinese Non-Performing Loans
Market Under the US–China Trade Deal 174
6 Why Did the Door Not Open Wider in the Aftermath
of Alibaba? – Placing (or Misplacing) Foreign Investment
in a Chinese Public Law Frame 197
