China Issues Judicial Interpretation on Foreign Investment Law
16 January 2020
The Supreme People’s Court of the People’s Republic of China recently issued new guidelines on the laws applicable in cases involving investment contract disputes between subjects of equal standing.
Under the new guidelines, People’s Courts will not favour contracted parties who claim investment contracts in sectors not on the ‘Negative List’ for foreign investment access referred to in Article 4 of the Foreign Investment Law are invalid or ineffective where they have not been approved or registered by administrative authorities. If such contracts were concluded before the implementation of the Foreign Investment Law but the People’s Court has not passed judgment on their validity since the law’s implementation, the new provision - which came into force on 1 January 2020 - will be applied to determine the validity of the contracts.
Full details can be found in the Supreme People’s Court’s Interpretation on Some Questions Concerning the Application of the Foreign Investment Law of the People’s Republic of China (Fa Shi No. 20 ), recently issued by the Judicial Committee of the Supreme People’s Court of China.
Source: Supreme People’s Court of the People’s Republic of China
- Mainland China