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On 3 September 2016, the Standing Committee of the National People’s Congress amended relevant laws on foreign-invested enterprises and the Ministry of Commerce has also issued a set of draft measures, both aiming to further relax the regime for the establishment and administration of corporate changes of foreign-invested enterprises (FIEs) on a nation-wide basis with effect from 1 October 2016.

Foreign investors should review proposed transactions relating to their FIEs in China and assess whether changes to their transaction documents might be required under this new regime. They should also be prepared for the uncertainties in the local implementation of the new regime and accordingly budget sufficient time and resources.

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