News & Insights

Experts give insight into the regulatory developments influencing China

Franki Cheung was recently interviewed for China Business Law Journal’s cover story on regulatory changes in China.

While the article covered China’ s new focus on antitrust in IP as well as new choices in financial markets, Franki commented on the new draft foreign investment law.

The draft law signals a radical transformation of how foreign investment and M&A deals would be handled in China and was met with considerable interest. Franki explained that the draft provides for the repeal of the key legal regulatory structure that has guided foreign investment in China for nearly four decades.

“The draft law will abolish the comprehensive approval system that has been applicable to foreign investment in China and replace it with one that requires only limited entry permitting and ongoing reporting,” Franki said.

“This has been very positively viewed and we expect a lot of business opportunities to arise from this change. We expect a major increase in foreign companies going into China which in turn will lead to a strong demand for legal work and other professional services,” he concluded.

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