Understanding the Chinese Business Environment: Legal Structures, Regulatory Institutions, Market Access, and Commercial Opportunities for Foreigners

Understanding the Chinese Business Environment: Legal Structures, Regulatory Institutions, Market Access, and Commercial Opportunities for Foreigners

Introduction

China occupies a distinctive position in the global commercial system. It is one of the world’s largest manufacturing economies, a major destination for international investment, an important centre for technological development, and a market of considerable significance for international trade and services. Its economic structure combines extensive private enterprise, large state-owned companies, foreign-invested businesses, public-sector institutions and a regulatory system in which economic policy and administrative supervision play substantial roles.

For foreign businesses, China presents both significant commercial possibilities and a demanding legal environment. The scale of its domestic market, its industrial supply chains, its infrastructure and its increasingly sophisticated consumer economy can create opportunities in manufacturing, technology, professional services, healthcare, education, logistics, consumer products and numerous other sectors. At the same time, market access is governed by sector-specific restrictions, licensing requirements, foreign investment rules, national security considerations and regulatory obligations that may differ considerably from those encountered in European or North American jurisdictions.

Understanding this environment requires more than knowing how to establish a company. A foreign investor must consider whether the proposed activity is open to foreign investment, which legal structure is appropriate, which administrative authorities supervise the sector, what registrations and licences are required, how capital may be contributed and repatriated, and what obligations arise under Chinese company, labour, tax, competition, data and intellectual property law.

The legal framework has evolved substantially. The Foreign Investment Law of the People’s Republic of China, effective from 1 January 2020, replaced the previous three principal foreign-investment laws with a unified framework. The revised Company Law, effective from 1 July 2024, introduced significant changes to corporate governance and capital contribution obligations. The 2024 national negative list, effective from 1 November 2024, further reduced restrictions on foreign investment, eliminating the remaining national-level foreign investment access restrictions in manufacturing. In June 2026, China also announced a new action plan intended to improve the utilisation of foreign investment and expand access in selected service sectors.

These developments demonstrate a continuing process of regulatory adjustment. They do not, however, mean that all industries are open to unrestricted foreign participation or that foreign-invested enterprises operate outside the ordinary regulatory framework.

This article examines the Chinese business environment from the perspective of international entrepreneurs, companies and investors. It explains the principal business structures, the institutions responsible for commercial regulation, the rules governing foreign investment, the procedures involved in entering the market and the principal opportunities and risks associated with doing business in China.

Key Takeaways

• China has a unified legal framework for foreign investment based principally on the Foreign Investment Law and its implementing regulations.
• Foreign investment is generally governed by a system of pre-establishment national treatment combined with a negative list identifying restricted or prohibited sectors.
• The 2024 national foreign investment negative list, effective from 1 November 2024, removed the remaining national-level access restrictions in manufacturing.
• Foreign investors may establish wholly foreign-owned enterprises in permitted sectors, participate in joint ventures, acquire interests in Chinese companies or establish certain other investment structures.
• A foreign-invested enterprise incorporated in China is generally governed by Chinese company law and other applicable domestic legislation.
• The revised Company Law, effective from 1 July 2024, introduced a general five-year deadline for shareholders of limited liability companies to contribute subscribed registered capital, subject to transitional arrangements and statutory exceptions.
• The State Administration for Market Regulation and its local authorities play a central role in company registration, market supervision, competition enforcement and commercial compliance.
• Industry-specific licences may be required even where foreign investment is generally permitted.
• Foreign-invested businesses must comply with Chinese rules on taxation, employment, social insurance, foreign exchange, accounting, data protection, cybersecurity and intellectual property.
• China offers substantial commercial opportunities, but market entry requires sector-specific research, realistic financial planning and an understanding of the relationship between national and local regulation.

1. The Structure of the Chinese Business Environment

1.1 A mixed economic system

China’s economic system is frequently described as a socialist market economy. This description reflects an institutional arrangement in which market transactions, private enterprise and competition operate alongside significant public ownership, state planning and government supervision.

Private companies play a major role in manufacturing, retail, technology, services, logistics, construction and other sectors. Foreign-invested enterprises participate in domestic production, international trade, research, distribution and services. At the same time, state-owned enterprises remain important in strategic industries, including energy, telecommunications infrastructure, transportation, finance and other areas considered significant to national economic development.

The business environment is therefore not organised exclusively around private ownership or market competition. Government authorities participate in economic planning, establish industrial priorities, supervise market access, regulate competition and impose requirements concerning national security and public interests.

This structure has practical consequences for foreign investors. A commercial activity may be economically attractive but subject to special licensing, ownership restrictions, public procurement requirements or additional administrative scrutiny. The legal question is not merely whether a business can be established, but whether the proposed activity can lawfully be undertaken by a foreign-invested enterprise under the applicable national and local rules.

1.2 National economic policy and commercial regulation

China’s central authorities establish broad economic priorities through national development strategies, legislation, administrative regulations and sectoral policies. Ministries and regulatory bodies translate these priorities into operational rules, licensing requirements and supervision mechanisms.

The National Development and Reform Commission (NDRC) is particularly important in economic planning, investment policy and the administration of certain investment projects. The Ministry of Commerce (MOFCOM) has responsibilities relating to foreign trade, foreign investment promotion and administration, and international commercial policy.

Other authorities regulate particular economic activities. The People’s Bank of China has central responsibilities in monetary and financial regulation, while the National Financial Regulatory Administration supervises important parts of the financial sector. The China Securities Regulatory Commission oversees securities and futures markets. The Ministry of Industry and Information Technology has responsibilities in industrial development and telecommunications-related policy.

This institutional structure means that businesses may interact with several authorities during the establishment and operation of a single enterprise. Company registration, foreign investment reporting, industry licensing, environmental approvals, customs registration and tax administration are distinct matters, even where their procedures are increasingly connected through government service platforms.

1.3 The importance of local government

China’s national legal framework applies throughout the country, but local authorities have substantial responsibilities for its implementation.

Provinces, municipalities, autonomous regions and lower-level administrative units may administer licences, supervise businesses, implement investment-promotion policies and provide access to industrial parks or development zones.

Local governments also compete to attract investment. Depending on the location and sector, an investor may encounter different administrative procedures, infrastructure arrangements, industrial support policies and local implementation practices.

However, local incentives must be assessed carefully. A commercial promise made during investment negotiations does not necessarily create an enforceable entitlement. Incentives may depend on eligibility criteria, budgetary approval, investment performance, employment commitments or other conditions. They must also comply with national law and applicable rules on fair competition and government financial support.

A foreign company should therefore distinguish between:

• National legal requirements.
• Provincial and municipal implementing rules.
• Local investment-promotion programmes.
• Administrative guidance and informal commercial assurances.

The distinction is important because local investment-promotion arrangements cannot lawfully override national legislation or remove statutory licensing requirements.

2. The Legal Framework Governing Business in China

2.1 The Foreign Investment Law

The Foreign Investment Law of the People’s Republic of China is the principal statute governing foreign investment. It entered into force on 1 January 2020 and established a unified legal framework for foreign investors and foreign-invested enterprises.

The law defines foreign investment broadly. It includes investment by foreign natural persons, enterprises and other organisations through the establishment of foreign-funded enterprises, acquisition of equity or similar interests in domestic enterprises, investment in new projects and other forms recognised by legislation or State Council regulations.

A foreign-invested enterprise is an enterprise established under Chinese law that is wholly or partly invested in by foreign investors.

One of the central principles of the statute is the system of pre-establishment national treatment combined with a negative list.

Pre-establishment national treatment means that foreign investors are generally to receive treatment no less favourable than domestic investors at the stage of investment access, subject to the special measures contained in the negative list and other applicable legal restrictions.

Outside the negative list, foreign-invested businesses are generally subject to the same market-access rules as domestic businesses.

The law also establishes principles concerning investment protection, intellectual property, government administration, investment information reporting and national security review.

Its significance is twofold. First, it provides a general legal basis for foreign investment in China. Second, it integrates foreign-invested enterprises more closely into the general Chinese company-law and regulatory framework.

Official text: Foreign Investment Law of the People’s Republic of China.

2.2 The implementing regulations

The Foreign Investment Law is supplemented by the Regulations on Implementing the Foreign Investment Law of the People’s Republic of China.

These regulations provide further detail concerning the administration and protection of foreign investment. They address matters such as investment promotion, equal treatment, investment information reporting, government conduct and the protection of foreign investors’ legitimate rights and interests.

The implementing framework is particularly relevant where an investor must determine how a general statutory principle applies to a specific administrative procedure.

For example, a foreign-invested enterprise may be subject to information reporting through the enterprise registration system and the national enterprise credit information publicity system. The reporting framework is intended to avoid unnecessary duplication where government departments can obtain relevant information through interdepartmental data sharing.

The existence of a unified foreign investment law does not eliminate sector-specific rules. Where a particular activity requires a licence or approval, the investor must still satisfy the relevant conditions.

2.3 The Company Law

The Company Law of the People’s Republic of China governs the establishment, organisation, operation and dissolution of companies incorporated in China.

The revised Company Law was adopted on 29 December 2023 and entered into force on 1 July 2024. It applies to domestic and foreign-invested companies, subject to special rules applicable to foreign investment and particular industries.

The law regulates:

• Limited liability companies.
• Joint-stock companies.
• Shareholder rights and obligations.
• Corporate governance.
• Directors, supervisors and senior management.
• Capital contributions.
• Share transfers.
• Corporate mergers and divisions.
• Dissolution and liquidation.
• Legal liability.

One of the most significant changes concerns registered capital. Under the revised framework, shareholders of a limited liability company generally must contribute their subscribed capital within five years from the company’s establishment, unless a different rule applies under law or administrative regulation.

This requirement has important implications for foreign investors. Registered capital should not be treated as a purely symbolic figure selected without regard to the company’s actual financial needs. A company may be required to contribute the capital it has subscribed within the applicable statutory period.

Transitional arrangements apply to companies established before the revised law took effect. The State Council’s provisions on implementing the registered capital registration system address the adjustment of certain existing contribution periods. In particular, companies established before 30 June 2024 may need to adjust contribution periods that extend beyond the transitional limits.

Investors should therefore examine both the registered capital amount and the contribution timetable when structuring a new enterprise or acquiring an existing company.

2.4 Other important legislation

The Chinese business environment is governed by a broader body of legislation. Depending on the activity, relevant laws may include:

• The Civil Code, governing contracts, property, civil liability and other private-law relationships.
• The Partnership Enterprise Law, governing partnership structures.
• The Anti-Monopoly Law, regulating monopolistic conduct and concentrations of undertakings.
• The Foreign Trade Law, governing international trade activities.
• The Customs Law, governing customs administration and import-export procedures.
• The Trademark Law, Patent Law and Copyright Law, protecting intellectual property.
• The Labour Law and Labour Contract Law, regulating employment relationships.
• The Environmental Protection Law and related environmental legislation.
• The Cybersecurity Law, Data Security Law and Personal Information Protection Law, regulating digital activities and information handling.
• The Tax Collection and Administration Law and applicable tax legislation.

The practical effect is that company formation is only the beginning of legal compliance. An enterprise must continue to satisfy the laws governing its particular activities throughout its commercial life.

3. Business Structures Available to Foreign Investors

Foreign investors can enter the Chinese market through several legal and commercial arrangements. The appropriate structure depends on the intended activity, the applicable foreign investment restrictions, the desired level of control, financial resources and commercial relationship with local partners.

3.1 Wholly foreign-owned enterprises

A wholly foreign-owned enterprise is a Chinese-incorporated enterprise whose equity is entirely held by one or more foreign investors.

The expression remains widely used in commercial practice, although the former separate statutory framework for wholly foreign-owned enterprises was replaced by the unified Foreign Investment Law.

A wholly foreign-owned limited liability company can provide foreign investors with substantial control over management, commercial strategy, staffing and operations, subject to Chinese law and applicable regulatory restrictions.

Its potential advantages include:

• Greater control over business decisions.
• Direct ownership of the enterprise by the foreign investor.
• A separate Chinese legal personality.
• The ability to conduct permitted commercial activities in China.
• A structure suitable for long-term market participation.

However, this structure is not available for every activity. If the relevant sector is prohibited to foreign investment, a wholly foreign-owned enterprise cannot lawfully conduct that activity. If the sector is restricted, the investor must satisfy the conditions imposed by the negative list or other applicable rules.

3.2 Joint ventures

A joint venture involves cooperation between foreign and Chinese investors through a shared business arrangement.

A joint venture may be structured as a limited liability company or another legally permitted arrangement. The participants contribute capital or other permitted resources and establish the contractual and corporate framework governing their relationship.

Joint ventures may be commercially useful where:

• The foreign investor requires a Chinese partner’s market knowledge.
• Local distribution networks are important.
• The business depends on established relationships with suppliers or customers.
• The sector imposes foreign ownership restrictions.
• The parties wish to combine technology, capital, expertise or commercial resources.

However, a joint venture introduces governance and contractual risks. The parties must consider voting rights, board composition, capital contributions, dividend distributions, reserved matters, intellectual property ownership, transfer restrictions and dispute-resolution mechanisms.

A poorly drafted joint venture agreement may create uncertainty over management authority, financial obligations and exit rights. The company’s articles of association and other corporate documents must also be consistent with applicable Chinese law.

A Chinese partner does not automatically guarantee regulatory approval, market access or commercial success. Due diligence remains essential.

3.3 Representative offices

A foreign company may establish a representative office in China for permitted non-profit-generating representative activities.

A representative office is generally not a separate Chinese company and cannot ordinarily conduct direct profit-making business operations in the same manner as a registered commercial enterprise.

Its activities may include:

• Market research.
• Business liaison.
• Product promotion.
• Communication with Chinese customers and suppliers.
• Coordination with the foreign parent company.
• Other permitted representative activities.

A representative office is therefore potentially useful for preliminary market exploration or maintaining a local presence without immediately establishing a full operating company.

However, it should not be used as a substitute for a properly licensed commercial entity. Activities such as directly entering into revenue-generating transactions or providing services for payment may exceed the permitted scope.

3.4 Foreign-invested partnerships

Foreign investors may participate in partnership enterprises where the relevant legal requirements are satisfied.

Partnerships are governed principally by the Partnership Enterprise Law and applicable foreign investment rules.

The principal forms include general partnerships and limited partnerships.

In a general partnership, partners may bear unlimited joint and several liability for partnership debts. In a limited partnership, general partners manage the enterprise and bear unlimited liability, while limited partners generally bear liability limited to their subscribed contributions, subject to statutory rules.

Partnerships may be suitable for certain investment, professional, venture capital or collaborative business activities. Their suitability depends on the relevant sector, the intended allocation of control and the liability structure.

Foreign investors must also consider whether the particular partnership activity is permitted under the foreign investment negative list and any relevant industry regulations.

3.5 Acquisitions and participation in existing Chinese businesses

A foreign investor may enter the Chinese market by acquiring equity or other permitted interests in an existing Chinese enterprise.

This approach may provide immediate access to an established business, employees, facilities, customers, suppliers and commercial licences, although licences and permits may not automatically remain valid after a change of ownership or control.

Acquisitions require careful due diligence concerning:

• Corporate ownership and shareholder rights.
• Registered capital and unpaid contributions.
• Tax liabilities.
• Employment contracts and social insurance.
• Intellectual property ownership.
• Real estate and land-use rights.
• Environmental compliance.
• Existing contracts and guarantees.
• Litigation and administrative penalties.
• Data protection and cybersecurity obligations.
• Foreign investment restrictions.

Some transactions may also trigger merger-control review or foreign investment security review. The applicable requirements depend on the transaction’s characteristics, the parties, the sector and the relevant thresholds or national security criteria.

An acquisition should therefore be assessed not merely as a commercial purchase but as a transaction that may require several separate regulatory analyses.

4. Foreign Investment Market Access and the Negative List

4.1 The principle of pre-establishment national treatment

The negative list is one of the most important instruments governing foreign investment in China.

It identifies sectors in which foreign investors face special administrative measures, including restrictions on ownership, management or the nature of permitted activities.

Outside the negative list, foreign investors are generally subject to the same market-access requirements as domestic investors.

This principle does not mean that every business activity is automatically permitted. Domestic and foreign businesses may both be required to obtain licences, satisfy professional qualifications, comply with safety rules or meet other statutory conditions.

The distinction is between restrictions specifically imposed on foreign investment and regulatory requirements applicable to the activity generally.

4.2 The 2024 national negative list

The 2024 Special Administrative Measures for Foreign Investment Access (Negative List) entered into force on 1 November 2024.

The list reduced the number of restrictive measures from 31 to 29. Two restrictions were removed, including the requirement for Chinese majority ownership in publication printing and a restriction concerning certain traditional Chinese medicine processing technologies and confidential-prescription products.

The 2024 list completed the removal of national-level foreign investment access restrictions in manufacturing.

This is a significant development for foreign manufacturers considering production, industrial cooperation and supply-chain investment in China.

Nevertheless, the elimination of manufacturing-specific foreign investment access restrictions does not remove general industrial regulation. Manufacturing enterprises must still comply with land-use requirements, environmental rules, product standards, workplace safety legislation, customs requirements and other applicable laws.

Nor does the national negative list provide a complete account of all local investment conditions or sector-specific licensing obligations.

The official list and explanatory materials should be consulted before any investment decision:

2024 National Negative List – National Development and Reform Commission.

4.3 Restricted and prohibited sectors

Foreign investment restrictions remain relevant in a number of sectors, particularly those connected with public information, education, telecommunications, finance, natural resources, culture and other regulated activities.

The precise restrictions vary. Some activities may be prohibited to foreign investment; others may be permitted only under ownership caps, joint venture arrangements, qualifications or special administrative conditions.

An investor should not assume that a broad industry label determines the applicable rules. For example, different types of telecommunications services, educational services or financial activities may be governed by different market-access conditions.

The relevant business activity must be examined at the level of the actual services, products and operations proposed.

4.4 The national market access negative list

The foreign investment negative list should be distinguished from the general national market access negative list.

The latter applies to both domestic and foreign investors and identifies activities that are prohibited or subject to specified market-access requirements.

Consequently, a foreign investor may find that an activity is not restricted by the foreign investment negative list but is nevertheless subject to a general market-access prohibition, licence or approval.

The two instruments perform different functions:

• The foreign investment negative list identifies special restrictions on foreign investment.
• The general market access negative list identifies restrictions applicable to market participants more broadly.

Both should be reviewed before entering a regulated sector.

4.5 Regional pilot programmes and special development zones

China has established numerous economic and technological development zones, free trade zones and other specialised investment areas.

These zones may offer streamlined administrative procedures, targeted investment promotion, infrastructure and sector-specific pilot policies.

They can be particularly relevant to manufacturing, logistics, international trade, research and development, financial services and selected digital activities.

However, the existence of a special development zone does not mean that national legislation ceases to apply. Nor does a local pilot programme necessarily grant an investor permission to undertake an activity prohibited under national law.

Foreign investors should verify the precise scope, duration and eligibility conditions of any preferential arrangement.

5. The Principal Regulatory Institutions

The Chinese business environment is administered by a network of national and local institutions. Understanding their respective functions helps foreign companies identify the authorities responsible for registration, licensing, supervision and enforcement.

5.1 The Ministry of Commerce

The Ministry of Commerce (MOFCOM) is a central government authority responsible for important aspects of foreign trade, foreign investment policy and international commercial relations.

Its responsibilities include foreign investment promotion, policy coordination, international trade administration and participation in the formulation and implementation of foreign investment measures.

Foreign investors may encounter MOFCOM-related procedures in connection with investment reporting, foreign trade and certain regulated commercial activities.

The ministry also works with other government departments on measures designed to improve the foreign investment environment.

5.2 The National Development and Reform Commission

The National Development and Reform Commission (NDRC) plays an important role in national economic planning, investment policy and the coordination of major economic development priorities.

Depending on the project and sector, investment projects may be subject to approval, filing or other administrative procedures under the applicable investment management framework.

Foreign investors should distinguish between the legal requirements for establishing an enterprise and the separate requirements for carrying out a particular investment project.

For example, registering a company does not automatically authorise the construction of a factory, the development of a major infrastructure project or the operation of a regulated facility.

5.3 The State Administration for Market Regulation

The State Administration for Market Regulation (SAMR) is a central institution with extensive responsibilities for market supervision and administration.

Its functions include:

• Market entity registration.
• Regulation of business conduct.
• Competition and anti-monopoly enforcement.
• Product quality supervision.
• Standardisation-related administration.
• Consumer protection.
• Regulation of certain advertising and commercial practices.
• Enforcement of relevant market supervision legislation.

Local market regulation authorities carry out many registration, inspection and enforcement functions within their jurisdictions.

For foreign-invested companies, SAMR-related procedures are particularly important during establishment, changes to corporate information, annual reporting and dissolution.

5.4 Tax authorities

The State Taxation Administration and its local tax authorities administer China’s tax system.

Businesses may have obligations relating to corporate income tax, value-added tax, consumption tax, individual income tax withholding, stamp duty and other applicable taxes.

The precise obligations depend on the company’s activities, income, transactions and legal status.

Foreign-invested enterprises are generally subject to the same principal tax legislation as comparable domestic enterprises. Special incentives or preferential regimes may apply where the relevant eligibility requirements are met.

Tax planning should also take account of cross-border payments, transfer pricing, withholding tax, tax treaties and the distinction between domestic and international tax obligations.

5.5 Financial regulatory authorities

China’s financial regulatory system includes several important institutions.

The People’s Bank of China performs central banking and monetary policy functions and has responsibilities in areas such as payment systems and financial stability.

The National Financial Regulatory Administration supervises important parts of the banking and insurance sectors. The China Securities Regulatory Commission supervises securities and futures markets.

Foreign participation in financial activities is subject to specific market-access rules, licensing requirements, prudential standards and regulatory supervision.

The fact that a foreign financial institution can establish a presence in China does not mean that it can conduct every category of financial business without separate authorisation.

5.6 Customs authorities

The General Administration of Customs and its local customs offices administer customs procedures, import and export supervision, customs valuation, tariff collection, origin requirements and other matters connected with international trade.

Businesses involved in importing or exporting goods may need customs registration and must comply with relevant documentation, declaration, inspection and product-control requirements.

Certain products are subject to additional restrictions, including licensing, certification, quarantine or safety requirements.

Customs compliance should be treated as an ongoing operational responsibility rather than a formality completed only when a company is established.

5.7 Other specialised regulators

Depending on the industry, businesses may also interact with authorities responsible for:

• Industry and information technology.
• Education.
• Healthcare and pharmaceuticals.
• Food and drug safety.
• Environmental protection.
• Transport.
• Energy.
• Construction.
• Agriculture.
• Cybersecurity and data regulation.
• Intellectual property.

The institutional structure is therefore sector-dependent. A technology company, a pharmaceutical manufacturer and an international logistics business may face substantially different licensing and compliance systems.

6. Establishing a Foreign-Invested Enterprise

6.1 Preliminary legal and commercial assessment

Before establishing a Chinese company, an investor should identify the exact activities the proposed enterprise intends to undertake.

This is important because the permitted business scope is not simply a general description of commercial ambitions. It is a registered and legally relevant statement of the activities the enterprise is authorised to conduct, subject to applicable licensing requirements.

The investor should examine:

1. Whether the proposed activity is permitted to foreign investors.
2. Whether the activity is restricted or prohibited under the applicable negative list.
3. Whether an industry licence or administrative approval is required.
4. Whether a special ownership or qualification requirement applies.
5. Whether the proposed location is suitable for the activity.
6. Whether the investment project requires separate approval or filing.
7. Whether the company will need customs, tax or other registrations.

This assessment should take place before substantial capital is committed.

6.2 Selecting the legal form

The investor must determine whether to establish a limited liability company, a joint-stock company, a partnership or another permitted form.

For many foreign investors conducting ordinary commercial operations, a limited liability company is the most familiar structure.

The choice should reflect the intended ownership arrangement, financing requirements, governance model, anticipated expansion and exit strategy.

The articles of association are particularly important. They regulate matters such as the company’s governance, shareholder rights, management arrangements, capital contributions and decision-making procedures.

Corporate documents should be drafted with the revised Company Law in mind rather than relying automatically on older templates.

6.3 Company name and registered address

A proposed company name must satisfy Chinese registration requirements.

The registered address must also meet applicable requirements. Depending on the activity, the authorities may require evidence of a lawful business premises or other documentation.

A company should not assume that a virtual office, shared office or residential address will be acceptable for every business activity.

Manufacturing, food production, healthcare, education and other regulated operations may require premises meeting specific technical or safety conditions.

6.4 Registered capital

Registered capital represents the capital subscribed by shareholders in accordance with the company’s constitutional documents.

Under the revised Company Law, shareholders of a limited liability company generally must contribute subscribed capital within five years from establishment, subject to applicable statutory exceptions.

The registered capital amount should be commercially realistic. Excessively low capital may be insufficient for the intended business, while an unnecessarily high amount may create significant contribution obligations.

Investors should consider:

• Initial establishment costs.
• Staffing and operational expenditure.
• Premises and equipment.
• Regulatory capital requirements, where applicable.
• Expected cash flow.
• The contribution timetable.
• Potential future financing needs.

The amount subscribed and the amount actually contributed should not be confused. A company may be registered with subscribed capital that has not yet been fully paid, but the shareholders remain subject to their legal contribution obligations.

6.5 Registration and foreign investment reporting

Company registration is generally handled through the market regulation authorities.

Registration information may include the company name, entity type, business scope, registered address, registered capital, legal representative and shareholder information.

Foreign-invested enterprises are also subject to the foreign investment information reporting system. Relevant information is generally submitted through the enterprise registration and credit information publicity systems, in accordance with the applicable reporting rules.

The registration and reporting systems have been designed to facilitate administrative coordination. Nevertheless, investors must ensure that the information submitted is accurate and that changes are reported when required.

6.6 Obtaining licences and completing post-registration procedures

Company registration does not necessarily authorise the enterprise to begin every proposed activity.

Depending on the business, further procedures may include:

• Industry-specific administrative licences.
• Environmental impact assessment or other environmental procedures.
• Fire safety and workplace safety requirements.
• Customs registration.
• Tax registration and invoicing arrangements.
• Foreign exchange and banking procedures.
• Social insurance registration.
• Product certification or quality approvals.
• Data or telecommunications-related compliance procedures.

The company should identify the applicable requirements before commencing operations.

7. Commercial Operations and Ongoing Compliance

7.1 Business scope

A company’s registered business scope defines the activities recorded in its registration.

Businesses must ensure that their actual operations remain consistent with their registered scope and any additional licensing requirements.

If the company expands into new activities, it may need to amend its registered business scope and obtain additional permissions.

An investor should therefore avoid treating the initial registration description as a matter of minor administrative wording. It may affect the company’s ability to conduct particular transactions and obtain industry approvals.

7.2 Corporate governance

Foreign-invested companies are governed by the Company Law and their articles of association.

Depending on the company’s structure and size, governance arrangements may involve shareholders, a board of directors, a manager and other statutory or internal supervisory arrangements.

The revised Company Law provides greater flexibility in certain governance arrangements while also strengthening directors’ and senior managers’ duties.

Foreign shareholders should ensure that decision-making procedures are clearly documented. Particular attention should be given to:

• Appointment and removal of directors.
• Authority to enter into major contracts.
• Approval of significant transactions.
• Related-party transactions.
• Financial reporting.
• Distribution of profits.
• Capital increases and reductions.
• Share transfers.
• Dispute resolution between shareholders.

A foreign parent company should not assume that its internal global governance policies automatically satisfy Chinese corporate requirements.

7.3 Accounting and financial reporting

Chinese companies must maintain accounting records in accordance with applicable Chinese accounting requirements.

They may also need to prepare financial information for their foreign parent companies under another accounting framework, depending on the group’s reporting obligations.

This can create a need for coordinated accounting systems, accurate transaction documentation and appropriate internal controls.

Companies should maintain reliable records of capital contributions, expenses, revenue, intercompany transactions, tax payments and distributions.

7.4 Employment and human resources

Foreign-invested enterprises employing staff in China must comply with Chinese employment legislation.

Important requirements concern written employment contracts, wages, working hours, rest periods, leave, occupational safety, social insurance and termination procedures.

Employment relationships are governed principally by the Labour Law and Labour Contract Law, together with applicable administrative regulations and local implementation rules.

Foreign employees may also require appropriate work permits and residence documentation. A company’s ability to employ foreign personnel depends on the relevant immigration and employment rules, not simply on the fact that the employer is foreign-invested.

7.5 Taxation

Foreign-invested enterprises are generally subject to the ordinary Chinese tax framework.

The main taxes relevant to commercial businesses include:

Corporate income tax. The standard rate is generally 25%, although qualifying enterprises may benefit from preferential rates or incentives under applicable rules.

Value-added tax. VAT applies to taxable supplies of goods, services, intangible assets and other transactions according to the relevant statutory framework. Rates and exemptions depend on the type of transaction and the taxpayer’s classification.

Individual income tax. Employers generally have withholding and reporting responsibilities in relation to employee income.

Other taxes and charges. Depending on the business, additional obligations may include consumption tax, stamp duty, property-related taxes and other statutory payments.

Cross-border transactions require particular care. Dividends, interest, royalties and service payments may involve withholding tax and treaty considerations.

The tax consequences of a proposed structure should be assessed before transactions are undertaken.

7.6 Foreign exchange and capital movements

China maintains a regulated foreign exchange system.

Foreign-invested enterprises may receive foreign capital, conduct domestic transactions and make certain cross-border payments, but the movement and conversion of funds are subject to applicable foreign exchange rules and banking procedures.

Capital account transactions, dividend distributions, shareholder loans, capital reductions and certain intercompany payments may require documentation and compliance checks.

The Foreign Investment Law recognises the right of foreign investors to transfer profits and other legitimate investment proceeds in accordance with law.

However, this should not be interpreted as an unrestricted right to move any amount of money across borders without documentation. Banks and relevant authorities may require evidence of the underlying transaction, tax compliance and the legal basis for the transfer.

7.7 Intellectual property protection

Intellectual property is a central concern for many foreign companies operating in China.

Businesses may need to protect trademarks, patents, copyrights, software, industrial designs, trade secrets and proprietary technology.

A foreign company should consider registering relevant intellectual property in China rather than assuming that protection obtained in another country automatically provides equivalent domestic protection.

Particular care should be taken with trademarks. The Chinese system generally operates on a first-to-file basis, making early registration commercially important.

Technology transfer and licensing arrangements should be documented carefully. Contracts should identify ownership, permitted use, confidentiality obligations, improvements, infringement procedures and termination consequences.

7.8 Data protection and cybersecurity

Businesses operating in China may collect, use, store, transfer or process personal and commercial data.

The principal legal framework includes the Cybersecurity Law, Data Security Law and Personal Information Protection Law.

These laws establish obligations concerning network security, data classification, personal information processing, data security management and certain cross-border transfers.

The requirements depend on the type of data, the nature of the business, the scale of processing and the applicable regulatory classification.

Foreign companies should not assume that their global data-processing arrangements can be transferred unchanged into China. A local compliance assessment may be necessary, particularly where the company handles sensitive personal information, important data or large volumes of customer information.

8. Commercial Opportunities for Foreign Businesses

China’s market is diverse. Opportunities vary significantly between regions and industries, and the commercial potential of a sector should not be confused with unrestricted legal access.

8.1 Manufacturing and industrial supply chains

Manufacturing remains an important area of foreign investment.

The removal of national-level foreign investment access restrictions in manufacturing under the 2024 negative list is significant for foreign businesses considering production facilities, industrial partnerships and supply-chain operations.

Potential areas include:

• Industrial machinery.
• Automotive components.
• Electronics.
• Advanced materials.
• Medical equipment.
• Renewable energy equipment.
• Industrial automation.
• Precision manufacturing.
• Consumer products.

Foreign manufacturers may benefit from China’s established supplier networks, logistics infrastructure and industrial clusters.

Nevertheless, commercial feasibility depends on costs, local competition, environmental requirements, labour availability, intellectual property protection and access to customers.

8.2 Technology and digital services

China has a substantial technology ecosystem, including software development, artificial intelligence, cloud services, industrial automation, robotics, digital commerce and advanced manufacturing.

Foreign companies may find opportunities in technology cooperation, specialised software, industrial solutions, research and development and business-to-business services.

However, digital activities may be subject to additional restrictions and regulatory requirements. Telecommunications, online information services, data processing and certain internet-related activities may involve specific market-access rules or licensing obligations.

The legal classification of the proposed service is therefore essential.

8.3 Healthcare and pharmaceuticals

Healthcare and pharmaceutical markets offer potential opportunities for foreign manufacturers, research organisations, medical technology companies and specialised service providers.

China has sought to expand selected areas of foreign participation in healthcare and pharmaceuticals through investment policy initiatives.

The June 2026 action plan for stabilising and optimising foreign investment identified pharmaceuticals and healthcare among the areas receiving attention in the expansion of service-sector access.

Nevertheless, healthcare is highly regulated. Product registration, clinical requirements, medical institution licensing, professional qualifications and advertising restrictions may all be relevant.

Foreign investment access and permission to provide a particular healthcare service are separate legal questions.

8.4 Education and professional training

Education and vocational training may offer opportunities for foreign organisations with specialised expertise, international programmes or professional development services.

However, foreign participation in education is subject to specific restrictions and regulatory conditions. The legal position may differ between schools, vocational institutions, non-academic training, language instruction and other educational services.

The 2026 foreign investment action plan also identified vocational skills training and selected higher education fields as areas for further opening-up measures and pilot development.

Investors must examine the precise activity and the applicable national and local rules before establishing an educational business.

8.5 Consumer products and retail

China’s large consumer market offers opportunities for international brands, specialised products, premium goods and businesses serving changing consumer preferences.

Potential areas include:

• Food and beverages.
• Cosmetics.
• Household products.
• Personal care.
• Sports and leisure products.
• Fashion and accessories.
• Consumer electronics.
• Premium and specialist retail.

Foreign companies should consider product standards, labelling, advertising, consumer protection, import procedures and e-commerce rules.

Brand recognition in another country does not guarantee acceptance in China. Market research, local distribution arrangements and an understanding of consumer expectations remain essential.

8.6 Logistics, trade and professional services

China’s role in international manufacturing and trade creates opportunities in logistics, supply-chain management, international distribution, warehousing, consulting and other business services.

Foreign businesses may also provide specialised professional services where market access and licensing requirements permit.

The precise scope of permissible activity must be examined carefully, especially in sectors such as legal services, accounting, finance, telecommunications and other regulated professions.

8.7 Renewable energy and environmental technology

Energy transition and environmental management are important areas of industrial development.

Foreign companies may find opportunities in renewable energy equipment, energy storage, industrial efficiency, environmental monitoring, water treatment, recycling and related technologies.

However, investment projects may be subject to land, environmental, planning, energy and technical approval requirements.

The commercial attractiveness of a project should therefore be assessed alongside its regulatory and infrastructure requirements.

9. The 2026 Policy Direction: Improving the Foreign Investment Environment

China’s foreign investment policy continues to evolve through national action plans, sectoral reforms and local pilot programmes.

On 22 June 2026, the Ministry of Commerce and other government departments announced a new action plan to stabilise and optimise the use of foreign investment.

The plan contains 15 measures across five broad areas:

1. Expanding market access.
2. Facilitating investment procedures.
3. Improving investment promotion.
4. Strengthening services and guarantees for foreign investment.
5. Improving foreign investment administration.

The policy places particular emphasis on services, finance, pharmaceuticals and healthcare, alongside measures intended to facilitate cross-border mergers and acquisitions, data flows and domestic reinvestment by foreign companies.

The announcement is relevant because it indicates that the next phase of foreign investment liberalisation is increasingly focused on services and selected regulated industries, following the removal of national-level foreign investment access restrictions in manufacturing.

However, an action plan should not be confused with an immediately applicable licence or an automatic statutory entitlement. Individual measures may require implementing rules, pilot arrangements or administrative procedures before businesses can rely on them.

Foreign investors should therefore distinguish between:

• Existing legislation.
• Published administrative regulations.
• Current negative lists.
• Announced policy measures.
• Pilot programmes awaiting implementation.
• Local investment-promotion arrangements.

This distinction is especially important when a business plan depends on a newly announced opening measure.

10. Principal Legal and Commercial Risks

10.1 Regulatory uncertainty

China’s regulatory environment is extensive and may evolve in response to economic priorities, technological developments, public interests and national security considerations.

A business that was previously permitted may become subject to additional requirements. A new policy may create opportunities but require implementing rules before it can be used in practice.

Foreign companies should maintain procedures for monitoring regulatory changes and assessing their effect on ongoing operations.

10.2 Sector-specific restrictions

A common mistake is to assume that the general principle of national treatment gives foreign investors unrestricted access to every commercial sector.

It does not.

The negative list, industry-specific legislation and licensing rules may impose additional conditions. An enterprise may be lawfully registered but unable to conduct a particular activity without further authorisation.

10.3 Contractual and commercial disputes

Foreign companies may encounter disputes involving suppliers, distributors, joint venture partners, employees, customers and commercial agents.

Contracts should clearly address payment, delivery, quality standards, liability, intellectual property, confidentiality, termination and dispute resolution.

A foreign investor should also consider the practical enforceability of contractual rights, the location of assets and the availability of interim measures.

The choice between Chinese court litigation and arbitration should be made deliberately, taking account of the parties, the transaction and the relevant enforcement framework.

10.4 Intellectual property risks

Intellectual property disputes may involve unauthorised use of trademarks, copying of products, misuse of confidential information or disagreements over technology ownership.

Preventive measures include early registration, careful contract drafting, access controls, confidentiality arrangements and regular monitoring of commercial partners.

10.5 Data and cybersecurity compliance

Data-related obligations can affect the design of IT systems, customer databases, cloud services, internal reporting and cross-border business operations.

Failure to identify applicable data obligations may create regulatory exposure and operational disruption.

Companies should assess their data activities before transferring systems or personal information into or out of China.

10.6 Competition and anti-monopoly compliance

China’s Anti-Monopoly Law applies to business conduct within its scope, including certain conduct outside China that has the relevant effects on the Chinese market.

Businesses should consider risks involving monopolistic agreements, abuse of market dominance, concentrations of undertakings and unfair competitive practices.

Mergers and acquisitions may require notification and review if the relevant legal conditions and thresholds are met.

10.7 Local implementation and administrative practice

Although national legislation establishes the general framework, local authorities administer many practical procedures.

Administrative requirements may differ in their implementation, documentation and processing arrangements.

Foreign investors should verify requirements with the competent authority in the location where the business will operate. General information from another province or city should not automatically be treated as applicable nationwide.

10.8 Repatriation of profits and exit planning

A foreign investor should consider not only how to enter China but also how to exit.

Potential exit routes may include a share transfer, acquisition by another investor, corporate restructuring, liquidation or other legally permitted arrangements.

Each route may involve company-law procedures, tax consequences, foreign exchange requirements and regulatory review.

A well-designed investment structure should address exit rights from the beginning, especially where the investor participates in a joint venture.

11. Practical Considerations Before Entering the Chinese Market

Foreign investors can reduce legal and commercial uncertainty by following a structured assessment before committing substantial resources.

11.1 Define the actual business activity

The first step is to describe precisely what the proposed enterprise will do.

Broad descriptions such as technology, consulting, education or healthcare may conceal several legally distinct activities.

The investor should identify the actual products, services, customers, revenue sources and operational functions.

11.2 Verify foreign investment eligibility

The proposed activity should be checked against the current national foreign investment negative list and the general market access negative list.

Where relevant, local rules and pilot programmes should also be reviewed.

11.3 Identify licensing requirements

The investor should determine whether the business requires an administrative licence, qualification, approval, filing or certification.

This assessment should cover both the enterprise and the premises or facilities through which it will operate.

11.4 Select an appropriate location

Location decisions should consider more than tax incentives or rent.

Relevant factors include:

• Access to customers and suppliers.
• Transport and logistics.
• Availability of qualified employees.
• Industrial infrastructure.
• Local licensing procedures.
• Environmental and land-use requirements.
• Local administrative capacity.
• Applicable regional policies.

11.5 Conduct due diligence on partners

Where a Chinese partner, distributor, supplier or acquisition target is involved, the investor should examine its legal status, ownership, financial position, business history and regulatory record.

Due diligence should also identify potential conflicts of interest, undisclosed liabilities, litigation, intellectual property issues and restrictions on the proposed transaction.

11.6 Plan capital and financial arrangements

The investor should establish a realistic capital structure and consider the contribution deadlines under the Company Law.

It should also assess banking arrangements, cross-border funding, foreign exchange procedures, tax consequences and future dividend distributions.

11.7 Protect intellectual property and confidential information

Relevant trademarks, patents and other intellectual property should be considered for registration and protection in China.

Contracts with employees, suppliers, distributors and partners should address confidentiality and ownership of work products or technology developed during the relationship.

11.8 Establish a compliance system

The enterprise should create procedures for monitoring legal obligations, maintaining corporate records, handling employee matters, managing data and responding to regulatory inspections.

Compliance should be treated as a continuous management responsibility rather than a one-time establishment task.

12. Conclusion

China offers foreign businesses access to a large and diverse commercial environment, supported by extensive industrial infrastructure, sophisticated supply chains and a substantial domestic market. The removal of national-level foreign investment access restrictions in manufacturing, the continuing development of the foreign investment framework and the 2026 measures aimed at expanding selected service sectors demonstrate an ongoing effort to attract and retain international investment.

Nevertheless, China’s business environment cannot be understood solely through the language of market size and commercial opportunity. It is shaped by a complex relationship between national legislation, administrative regulation, local implementation, sector-specific licensing and broader economic policy.

The Foreign Investment Law provides the central framework for foreign participation, while the Company Law governs the corporate structures through which many foreign investors operate. The negative lists determine the special conditions attached to market access, and specialised regulatory institutions supervise the activities of businesses across the economy.

For foreign investors, the central task is therefore to establish the legal conditions for sustainable commercial activity before committing capital. The selection of a business structure, the assessment of foreign investment restrictions, the identification of licensing requirements, the protection of intellectual property and the management of tax, employment, data and foreign exchange obligations all form part of a successful market-entry strategy.

China is neither a market in which foreign investment is universally unrestricted nor one in which foreign businesses are excluded from meaningful commercial participation. It is a regulated and evolving economy in which opportunities depend on the precise nature of the proposed activity, the applicable legal framework and the investor’s ability to operate in compliance with Chinese law.

For international companies, a sound understanding of this framework is not merely a preliminary administrative exercise. It is a fundamental condition for informed investment, effective risk management and long-term commercial participation.

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Frequently Asked Questions (FAQs)

1. Can foreigners establish a company in China?

Yes. Foreign natural persons, enterprises and other organisations may establish foreign-invested enterprises in China, subject to the Foreign Investment Law, the applicable negative lists, company registration requirements and any sector-specific restrictions.

2. Can a foreign investor own 100% of a Chinese company?

Yes, in sectors where wholly foreign-owned investment is permitted. Some sectors remain subject to restrictions or special ownership conditions.

3. What is a foreign-invested enterprise?

A foreign-invested enterprise is an enterprise incorporated under Chinese law that is wholly or partly invested in by a foreign investor.

4. What is the difference between a wholly foreign-owned enterprise and a joint venture?

A wholly foreign-owned enterprise is owned entirely by foreign investors. A joint venture involves participation by foreign and Chinese investors, usually through a shared corporate or partnership arrangement.

5. Is a Chinese partner always required?

No. A Chinese partner is not generally required in sectors open to wholly foreign-owned investment. However, some restricted activities may impose ownership or structural requirements.

6. What is China’s foreign investment negative list?

It is an official instrument identifying sectors in which foreign investment is prohibited or subject to special restrictions, such as ownership caps or other conditions.

7. Are all manufacturing activities open to foreign investors?

The 2024 national foreign investment negative list removed the remaining national-level foreign investment access restrictions in manufacturing. However, manufacturers must still comply with general industrial, environmental, safety, land-use and licensing requirements.

8. Does national treatment mean that foreign companies have exactly the same rights as Chinese companies?

Foreign investors generally receive national treatment outside the negative list, subject to applicable law. This does not remove sector-specific licensing, regulatory requirements or restrictions applying to particular activities.

9. Which authority registers foreign-invested companies?

Company registration is administered by the market regulation authorities under the framework supervised nationally by the State Administration for Market Regulation.

10. Does company registration automatically authorise all business activities?

No. Certain activities require separate licences, approvals, qualifications or filings before operations may begin.

11. What is the role of the Ministry of Commerce?

The Ministry of Commerce is responsible for important aspects of foreign investment policy, foreign trade administration, investment promotion and international commercial relations.

12. What is the role of the National Development and Reform Commission?

The NDRC participates in economic planning, investment policy and the administration of certain investment projects. Its role may be relevant where a project requires approval or filing under the applicable investment rules.

13. What is the minimum registered capital for a foreign-invested company?

There is no single universal minimum applicable to every foreign-invested company. Certain industries impose specific capital requirements, while ordinary companies are subject to the general Company Law and applicable sectoral rules.

14. Must registered capital be paid immediately?

Not necessarily. Under the revised Company Law, shareholders of a limited liability company generally must contribute subscribed capital within five years from establishment, subject to statutory exceptions and applicable transitional arrangements.

15. Can a foreign company open a representative office in China?

Yes, subject to applicable registration requirements. A representative office may perform permitted representative and liaison activities but is generally not authorised to conduct ordinary profit-generating business operations as a Chinese commercial company would.

16. Can foreigners establish partnerships in China?

Foreign investors may participate in partnerships where the relevant legal and foreign investment conditions are satisfied. The liability and management consequences depend on the type of partnership.

17. Are foreign-invested enterprises subject to Chinese taxation?

Yes. They are generally subject to the ordinary Chinese tax framework, including applicable corporate income tax, VAT, withholding and other tax obligations.

18. Can foreign-invested companies employ Chinese workers?

Yes. They may employ Chinese employees subject to Chinese employment, labour protection, social insurance and other applicable legislation.

19. Can foreign-invested companies employ foreign workers?

Yes, where the applicable work permit, residence and employment requirements are satisfied. The employer must comply with the rules governing the employment of foreign nationals.

20. Can a foreign investor freely transfer profits out of China?

Foreign investors may transfer profits and other legitimate investment proceeds in accordance with law. Cross-border transfers remain subject to applicable tax, banking, documentation and foreign exchange requirements.

21. Can foreign companies acquire existing Chinese businesses?

Yes, subject to foreign investment restrictions, corporate procedures and any applicable merger-control, national security or industry-specific review requirements.

22. Does China have free trade zones?

China has established free trade zones and other specialised development areas. These may provide investment facilitation and pilot policy arrangements, but they do not generally exempt businesses from national legislation.

23. Are foreign companies protected under Chinese law?

The Foreign Investment Law recognises protections for foreign investors and their legitimate investments and interests. Protection operates within the Chinese legal framework and is subject to applicable statutory conditions.

24. Is intellectual property protected in China?

Yes. China has legislation protecting trademarks, patents, copyrights and trade secrets. Foreign companies should consider registering and protecting their intellectual property in China rather than relying exclusively on registrations obtained elsewhere.

25. Are foreign companies subject to Chinese data protection laws?

Yes, where their activities fall within the scope of the applicable legislation. The Cybersecurity Law, Data Security Law and Personal Information Protection Law may impose obligations concerning data processing, security and cross-border transfers.

26. Can a foreign company operate an online business in China?

Potentially, but the legal requirements depend on the nature of the online activity. Certain telecommunications, internet information and digital services are subject to special market-access and licensing rules.

27. Is China an attractive market for small foreign businesses?

It can be, particularly for businesses offering specialised products or services. However, market entry costs, regulatory obligations, competition, distribution arrangements and local demand should be assessed carefully.

28. What are the main risks of investing in China?

Important risks include regulatory uncertainty, sector-specific restrictions, licensing requirements, contractual disputes, intellectual property concerns, data compliance, foreign exchange procedures and local implementation differences.

29. What changed in China’s foreign investment policy in 2026?

In June 2026, China announced a 15-measure action plan intended to improve foreign investment utilisation. It included measures concerning market access, investment procedures, investment promotion and support services, with particular attention to selected service sectors, finance, pharmaceuticals and healthcare.

30. Should a foreign investor obtain legal advice before establishing a business in China?

A foreign investor should obtain qualified advice on the proposed structure, sector eligibility, licences, capital obligations, tax, employment and regulatory compliance. This article provides general legal education and does not replace advice based on the investor’s particular circumstances.

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Authoritative Legal Sources and Further Reading

The following legislation and official institutional materials provide a foundation for understanding China’s business and foreign investment environment.

1. Foreign Investment Law of the People’s Republic of China – The principal legislation governing foreign investment, market access, investment protection and administration.
2. Foreign Investment Law – National Development and Reform Commission – An official English-language publication of the statute.
3. Regulations on Implementing the Foreign Investment Law – Government material concerning the implementation of the foreign investment framework.
4. 2024 Special Administrative Measures for Foreign Investment Access (Negative List) – The national negative list effective from 1 November 2024.
5. Foreign Investment Guide of the People’s Republic of China (2025 Edition) – Ministry of Commerce material covering market access, investment promotion, investment protection and administration.
6. Company Law of the People’s Republic of China (2023 Revision) – The revised company legislation effective from 1 July 2024.
7. Regulations on Implementing the Registered Capital Management System under the Company Law – State Council material explaining the revised registered capital framework and transitional arrangements.
8. Regulations on the Administration of Market Entities – The regulatory framework for market entity registration and administration.
9. Foreign Investment Information Reporting Measures – Rules concerning foreign investment information reporting and administrative coordination.
10. China’s 2026 Action Plan for Stabilising and Optimising the Utilisation of Foreign Investment – An official announcement describing the 15 measures introduced in June 2026.
11. China Business Environment Development Report 2025 – National Development and Reform Commission material addressing market entry, business operations, regulatory enforcement, dispute resolution and enterprise exit.
12. Ministry of Commerce of the People’s Republic of China – Official information on foreign trade, investment policy and commercial administration.
13. National Development and Reform Commission – Official information on economic policy, investment administration and national development priorities.
14. State Administration for Market Regulation – Official information on market entity registration, competition, product quality and market supervision.
15. National Financial Regulatory Administration – Institutional information concerning financial sector supervision.

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Educational note: This article provides general information about the Chinese legal and commercial environment as at November 2026. Foreign investment eligibility, licensing, tax treatment and regulatory procedures depend on the precise activity, location and circumstances of each enterprise. Announced policy measures should be distinguished from legislation and implementing rules already in force. The article is intended for educational purposes and does not constitute legal, tax or investment advice.