Q:
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Shall we be treated as a foreign invested company if the nationality of our Chinese shareholder is changed?
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A:
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According to the Provisions on M&A of Domestic Enterprises by Foreign Investors of the PRC, if the nationality of a natural person shareholder of the domestic company is changed, the nature of the company will not be affected therefore.
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Q:
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Whether an investment made in China by Chinese citizens residing overseas will be treated as a foreign investment?
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A:
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The above investment activity will be treated as foreign investment in accordance with the Regulations on the Implementation of the Foreign Investment Law of the PRC.
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Q:
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How to define “residing overseas”?
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A:
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Residing overseas means that a Chinese citizen has obtained the right of permanent residence in the country of residence and has resided in the country of residence for two consecutive years, and has resided in the country of residence for not less than 18 months accumulatively within two years.
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Q:
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Whether an investment made in China’s mainland by Hong Kong or Macao investors will be treated as a foreign investment?
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A:
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The above investment activity will be treated as foreign investment. Investors from Hong Kong and Macao shall refer to the Foreign Investment Law and the implementing regulation when investing on the Chinese mainland.
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Q:
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Whether an investment made in China’s mainland by Taiwan investors will be treated as a foreign investment?
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A:
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The above investment activity will be treated as foreign investment. For investment on the Chinese mainland made by investors from Taiwan, the Law on the Protection of Investment by Taiwan Compatriots and its implementing regulation shall be applied, and matters not covered shall be addressed by the Foreign Investment Law and the implementing regulation.
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FAQ
