Study On The Foreign Investment Law (Draft) And The Regulation Of VIE

In Jan 19 th,2015,the Chinese Ministry of Commerce(along with other 5 national ministries)promulgated the Foreign Investment Law(Draft)(hereafter referred to as “draft”)on its official website.The draft stipulates that the VIE should be regulated as one way of the foreign investment,which covers the blank area of the access of foreign investment.The actual controller standard is added as the first time as one of the factors to define the foreign investor,while the access system of foreign investment based on the negative list and Pre-establishment national treatment is different from the existing system based on the positive lists including the Catalogue of Guidance for Industries of Foreign Investment.Moreover,the draft renews the supervision of the foreign investment by setting a brand new reporting system.By introducing the present situation of VIE along with the legal analysis of VIE in China,the dissertation here focuses mainly on the influences of the draft to VIE and the challenges the draft brings to VIE.The draft divides VIE into different kinds based on its actual controller.By separating the VIEs(including the existing ones and those are about to be set)actually controlled by Chinese investors from those controlled by foreign investors,this dissertation analyzed the influence and the regulation the VIEs are facing.However the criterion based on the actual controller conflicts with the existing regulations,which need to be perfected.The aim of this dissertation is to find out the conflicts and come up with the sugg estions and advises to perfect and improve the Foreign Investment Law.