With the growth of China’s economy, more and more foreign investors are looking to invest in China. As China’s legal system is quite different from Western countries, foreign investors often need to hire Chinese lawyers to provide legal services related to their investments in China. A foreign investment lawyer can help foreign investors navigate China’s regulatory environment, choose the right investment vehicle, complete registration and approval procedures, resolve disputes, and protect their rights and interests. This article analyzes the role of foreign investment lawyers in China from multiple dimensions.
Procedures and requirements for foreign investors to set up companies in China
The article introduces the procedures and requirements for foreign investors to set up wholly foreign-owned enterprises (WFOEs) in China, including confirming company type and business scope, checking company name, preparing registration documents, submitting materials and obtaining approval certificates, opening bank accounts, registering with tax authorities, etc. A foreign investment lawyer can provide legal advice and services throughout the WFOE registration process.
Analysis of national treatment clauses in international investment agreements
The article analyzes national treatment clauses in IIAs regarding the scope of applicable investment phases and activities/objects covered. It also introduces common exceptions to national treatment in IIAs. A foreign investment lawyer can help foreign investors review IIAs, negotiate better treatment, and bring national treatment violation claims in investment arbitration if necessary.
How arbitral tribunals review national treatment obligations
When reviewing national treatment violation claims, arbitral tribunals often conduct: 1) ‘in like situations’ review to identify appropriate domestic comparators; 2) assess if discriminatory treatment exists between foreign and domestic investors; and 3) evaluate the reasonableness of such different treatment. A foreign investment lawyer can represent foreign investors in navigating this analysis process in investment arbitration proceedings.
In conclusion, as China opens wider to foreign investment, demand for foreign investment lawyers will continue to grow. They play an indispensable role in advising foreign investors on China’s regulatory regime, assisting with company registration and approvals, resolving disputes, negotiating better treatment in IIAs, and protecting foreign investors’ rights.