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[ESTABLISHING A BUSINESS ENTITY IN CHINA]
8) Compliance With the development of globalization, China’s compliance legal framework and supervision system keeps evolving at a fast pace over the past decade, especially in the field of anti-trust and competition laws, data protection and cybersecurity, and import and export control, etc. The Chinese government’s strengthened scrutiny with regard to these areas are not specially designed for FIEs, but such compliance issues may more often be encountered by FIEs due to their foreign elements. Therefore, while an FIE is navigating in an unfamiliar legal environment in China, it is advisable to understand the regulatory rules for compliance purposes as soon as practicable. It is also recommended that an FIE invest more efforts in building up and continuously strengthening its regulatory and compliance management system to adapt to the increasingly strict regulatory climate worldwide. Despite establishing general business entities in the PRC as mentioned above, establishing an investment platform also serves as an essential channel for foreign investors to directly invest in China. The types of such investment platform mainly include Foreign-invested Holding Company (FIHC), Foreign-invested Venture Capital Enterprise (FIVCE) and Qualified Foreign Limited Partnership Pilot Program (QFLP). Owing to length constraints, relevant introduction is not included in this article. Please contact us to receive more information if you are interested.
ILN Corporate Group – Establishing a Business Entity Series
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