China to bring in first law on overseas investment in 2017


China is expected to launch its first law on overseas investment this year, led by the country's Ministry of Commerce and the National Development and Reform Commission.

The new law will not only clear up and integrate current related regulations, but also explicitly stipulate the definition of outbound investment, approval procedures, entry-exit personnel, capital financing, profit distribution, profit reinvestment, tax policy and so on, reports Economic Information Daily.

An unnamed insider told Economic Information Daily that the new law will encourage investment which yields sound social and economic benefits, strengthens supervision on aimless or irrational investments, and prohibits and punishes investment behaviour violating laws of China or the destination country of the investment.

China's outbound investment has seen rapid growth in recent years, and has surpassed foreign investment in China. As of the end of 2015, 20,000 Chinese investors had established 30,000 overseas firms and the total amount of foreign assets reached $4.4 trillion.

However, right now, China has only a patchwork of lower-level regulations from various ministries to govern outbound investment. Liang Guoyong, an economic affairs officer at the United Nations Conference on Trade and Development (UNCTAD), said the new, higher-level law will help resolve new problems on outbound investment, and effectively protect overseas commercial interests.

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