Research On The Actual Control Standard Of Foreign Investment

The draft of Foreign Investment Law has proposed to introduce the actual control standard on the basis of the existing criteria for judging the place of registration of domestic and foreign capital in China,but the formally adopted Foreign Investment Law has not introduced the actual control standard.But the actual control standard can reflect the attributes of domestic and foreign capital in essence,so this paper research on the actual control standard of foreign investment.Apart from the introduction,this paper is divided into five parts:Part Ⅰ: The theoretical analysis of the actual control standard of foreign investment.It includes defining the concepts of control,actual control standard,non-financing round-tripping investment and VIE model,and analyzing the theoretical basis of actual control standard of foreign investment,namely the theory of state sovereignty and the theory of state intervention.Part Ⅱ: the dilemma caused by the single registration standard in China.The single registration standard leads to two predicaments: one is that some enterprises use non-financing return investment to arbitrage tax preferences and the other is that some enterprises use VIE model to break through the restrictions on foreign investment access.Part Ⅲ: Benefits of the actual control standard of foreign investment.There are three main benefits of the actual control standard of foreign investment,namely,it will help to clarify the concept of foreign investors,restrain the risks brought by VIE model,and to expand the opening up;at the same time,it is also the mainstream international standard.Part Ⅳ: An investigation of the actual control standards of the United States.Including the reasons for choosing the United States as the object of study,the identification of "control","foreigners" and "American companies" in the United States,the subject of judgment of control in the United States and the resons of China and the United States use different standards for judging domestic and foreign investements.Part Ⅴ: The Countermeasures of the predicament caused by the single standard of registered place in China.Including introducing the actual control standard into legislation,stipulating non-financing round-tripping investment enterprises as Chinese investors,anddefining the nature of VIE model enterprises and the disposal methods of existing VIE model enterprises.