I am writing an ebook named as Fashion Law in China. This ebooks is an introduction of the main commercial laws and regulations that are concerned with fashion business. But it is not only for fashion industry. I hope this ebook may help people who is interested to learn the basic systems and key issues concerned in developing business in China. Iwill provide some case studies in some parts after introducing the key laws and regulations in that field. I will post my latest writing here and updated the old version from time to time.

1. Fashion Law in China
Part 1 Introduction of PRC Foreign
Investment Law
Part 2 Introduciton of China’s
Laws on Data Security and
Personal Information Protection
Part 3 Introduction of China’s
Laws on Propaganda and
Advertisement
Part 4 Introduciton of PRC
Trademark Law
Part 5 Introduction of PRC
Copyright Law
Part 6 Introduciton of PRC Anti
Unfair Competition Law
Part 7 Introduciton of China’s
Laws and Regulations on
Business Secrets Protection
Part 8 Introduction of PRC Anti-
Trust Law
Part 9 Introduciton of PRC Labor
Law
Apeng Apeng
Lawyer
Shanghai Haikuan Law Firm
+86 189 3027 0677
ann@ireedlaw.com
If you have any questions on legal business in China, such as
foreign investment in China, data security compliance rules in
China, trademarks, copyright, public propaganda and
commercial contracts, please feel free to contact me. I am
always ready to help.
I am writing an ebook named as Fashion Law in China. This
ebooks is an introduction of the main commercial laws and
regulations that are concerned with fashion business. But it is
not only for fashion industry. I hope this ebook may help
people who is interested to learn the basic systems and key
issues concerned in developing business in China. Iwill provide
some case studies in some parts after introducing the key laws
and regulations in that field.
Following is the table of content.

2. Chapter One - Introdution of Foregin Investment Law
System in China
PRC Foreign Investment Law
Implementing Regulations on PRC
Foreign Investment Law
Measures on Strategic Investment
by Foreigners to Chinese Public
Listed Companies
Rules on Merger and Acquisition
of Chinese Enterprises by Foreign
Investors (enacted by Ministry of
Commerce)
Regulations on Approval and
Recording of Projects Invested by
Enterprises
Measures on Post- Supervision of
Projects Invested by Enterprises
Notice on Implementing PRC
Foreign Investment Law for
Registraton of Foreign Invested
Enterprises
Regulations on Registration of
Market Entities
Regulations on Optimizing
Business Environment
Measures on Information
Reporting of Foreign Investment
Regulations on Security
Inspection of Foreign Investment
This is chapter one of the introduction of foreign investment law system of
China. It consists of the following subjects:
1. Foreign Investment Law System in China;
2. Key rules of PRC Foreign Investment Law which sets up the fundamental
system of foreign investment law;
3. What protections foreign invesment can obtain in China;
4. What compliance’s rules foreign investment should observe.
It is a part of my book Fashion Law in China.
Apeng Shang
Part 1 Introduction of Foreign Investment Law in China
Fashion Law in China
The two have provided the system of
registration of foreign invested companies.
As displayed in its name, the Regulaitons aim
to improve business environment of China.
These are the implementing rules on
supervision of projects investment made by
enterprises. It both apply to Chinese
companies and foreign companies.
The two has built the basic law system of
foreign investment in China.
It has provided on how foreigners can invest in
Chinese public listed companies.
It has provided on the rules how foreigners can
invest in Chinese companies through merger
and acquisition.
​报告事项清单
It has provided on what should be inspected
when national security is concerned in a
foreign investment project.

3. Chapter Two - PRC Foreign Investment
Law - Key Points
Article 2 Keyp points: other
investors. It includes the “Chinese
natural persons”.
In the past, Chinese natural persons were
not allowed to be an investor of a sino-
foreign joint venture. Now this rule
changed. Chinese natural persons can be
an investor of the joint venture.
Article 2 Investment Activities
This article has provided that the forms of
foreign investment can be one of the
following:
1. direct investment (WFOE and Sino-
foreign joint ventures),
2. merger and acquisition of Chinese
enterprises,
3. investment in new projects and,
4. other forms which are permitted by law.
Here “new projects” refer to those projects
in which
1. parties involved in build their relations
through contracts/agreements,
2. The projects may be the ones to explor
natural source or to develop large
infrastructure construction.
Article 4 Pre-entry national
treatment and negative list
Pre-entry national treatment is defined as
treatment given to foreign investors at the
stage of entry in which the investment
standards are not lower than that of
domestic investors and their investments;
the negative list refers to state regulations
for foreign investment in specific areas to
include special management measures for
investment implementation approval. The
state shall ensure equal national treatment
to foreign investment excluded from the
negative list.
Currently the effective negative list is
Special Admin Measures for Foreign
Investment access into China (2021).
Article 9 equal application of
China’s supporting policies
This article has provided that all the policies
that the government has made to support
the development of enterprises shall be
equally applied to foreign invested
enterprises.
Article 10 Opinions from FIE are
to be respected
This article has provided that the legislative
organizations shall solicit opinions from
foreign invested enterprises when it comes
to the legislation of lawns and regulations
concncering foreign investment.
This article has provided that all the judicial
verdicts related to foreign investment shall
be disclosed to public. It is a judicial rule in
China that all the judicial verdicts shall be
open to public. Here it is a restatement of
national treatment.
Article 13 Special promotion to
foreign investment
This article has provided that the state will
set up special economic zones when it is
necessary or implement pilot policies to
promote foreign investment in some areas.
It shows that China will continue to
welcome foreign investment into the
country; the pilot policies may be
preferential to foreign invesment.
Article 14 Guidance and prefential
treatment
This article provided that the state will
encourage and guide foreign investment to
certain areas and industries; meanwhile
foreign investment may enjoy preferential
treatment that is provided by laws and
regulations.
Article 15 Equal engagement in
standards making
This article has provided that foreign
invesment has the rights to join the process
of standards building of industries.
Article 16 Equal engagement in
public procurement
This article has provided that foreign
invested enterprises has the right to equally
take part in public procurement. This is a
restatement of national treatment.
Article 17 Financing in China
This article has provided that foreign
invested enterprises may do its security
financing by IPO and bonds in the Chinese
market.
It is restatement of national treatment.
Article 20 No levy
This article has provided that the state shall
not impose levy on foreign invested
enterprises.
Even if levy is necessary in situations, for
the sake of public interest, reasonable
compensation shall be given.
Article 21 Free entry and exit of
capital and profit
This article has provided that the capital
that foreign investors has paid and the
profit that foreign investors has obtained
from the investment activities is allowed to
be remitted out of China.
Article 22 Protection of
Intellectual Properties
This is a restatement of national treatment.
There are PRC Trademark Law, PRC
Copyright Law and PRC Patent Law that
protects the benefit of all enterprises
including the foreign investment ones.
Article 23 Protection of business
secrets
This article has provided that administrative
organs and its staff members shall keep
confidential on the business secrets of
foreign invested enterprises if they has
obtained such business information in
communication with foreign invested
enterprises.
China is in the legistration process of
Business Secrets Protection Law. Before it
is enacted, there are administrative rules
that protect the business secrects of
enterprises.
Article 25 Policies commitment
should be carried out
This article has provided that the policies
commitment made by local government to
foreign invested enterprises shall be carried
out. Even if the commitment should be
amended due to national interests, the
amendment shall be made in the legal
procedures and reasonable compensation
shall be made to the foreign invested
enterprises.
Article 31 Corporate Structures
This article has provided that the structures
and operating procedures of foreign
invested enterprises shall be subject to the
provisions of PRC Company Law and PRC
Patnership Enterprises Law.
In the past the structures and operating
procedures of sino-foreign joint ventures
and sino-foreign contractual ventures are
different from those under Company Law.
After the Foreign Investment Law becomes
effective, foreign invested enterprises shall
practice in the structures and under
operating procedures of Company Law and
Partnership Enterrpises Law.
Article 33 Concentration of
operators
This article has provided that If a foreign
investor acquires a Chinese domestic
enterprise or participates in the
consolidation of other business operators in
other ways, it must comply with anti-
monopoly assessments of the business
operator in accordance with the provisions
of the Anti-Monopoly Law of the People's
Republic of China.
Concentration of operators usually engage
in business over billions. Therefore
common investment won’t come to this
problem unless the investment is especially
huge.
Article 34 Reports to be made
This article has provided that the foreign
invested enterprises should make reports to
administrative offices in due procedures.
In the past the foreign invested enterprises
need to go through annual joint inspection
by several administrative offices; many
reports had to be provided and many
administrative offices were involved. Now
the new reporting system has made things
simplified.
The detailed procedures of report is
provided in the Administrative Meassures
on Matters to Be Reported by Foreign
Invested Enterprises. According to the
Measures, following subjects should be
reported to relevant offices:
1. Setting up of a foreign invested
enterprises;
2. Key changes of the enterprises, such as
changes of investors/shareholders,
directors of the board, general managers,
business scope and etc;
3. Annual business summary.
Article 35 When national
securities are concerned
This article has provided that foreign
investment should go through security
review for approval when the investment is
concerned with national security.
The implementing rules of the above article,
Measures on Security Review of Foregin
Investment, has provided on what subjects
should go through national security review.
When the foreign investment is concerned
with military, important agricultural
products, important infruscture
constructions, important cultural products
and services, important technologies and
internet products as well as import financial
services.
Investment on the aforesaid subjects should
go through security review before the
investment is approved.
This is chapter two of the introduction of foreign investment law system of
China. It consists of the following subjects:
1. Foreign Investment Law System in China;
2. Key rules of PRC Foreign Investment Law which sets up the fundamental
system of foreign investment law;
3. What protections foreign invesment can obtain in China;
4. What compliance’s rules foreign investment should observe.
It is a part of my ebook Fashion Law in China.
Apeng Shang
Fashion Law in China
Part 1 Introduction of Foreign Investment Law in China

4. Chapter Three - What protections are available for
Foreign Investment
Investment
No Levy
According to article 20 of PRC Foreign
Investment Law, no levy shoul d be imposed
on foreign invested companies and/or
foreign invested projects; even though levy
occurs in extreme circumstances, it should
be made under legal procedures and
reasonable compensation should be
provided.
Profit and gains are to be remitted out of
China freely.
According to article 21 of PRC Foreign
Investment Law, the profits and gains of
foreign investors may be freely remitted out
of China.
Policy commitments should be kept.
According to article 25 of PRC Foreign
Investment Law, if local government offices
make policy commitments on foreign
investment, they should carry out such
commitments; reasonable compensation
should be made if such commitments are
not carried out.
Intellectual Property
General Principles
According to article 22 of PRC Foreign
Investment Law, the intellectual property of
foreign investors are protected by the laws
and regulations of China.
Collaborations on technologies between
foreign investors and Chinese parties are
encouraged and such collaborations should
be made on the basis of fairness. No
administrative offices or people should
force foreign investors to transfer
technologies by administrative pressures.
PRC Patent Law
PRC Trademark Law
PRC Copyright Law
Business Secrects
According to article 23 of PRC Foreign
Investment Law, all the business secrets
disclosed to administrative offices should
be kept confidential.
Foreign invested companies have worked
for years to promote the legislation of PRC
Business Secrects Law. At now a draft of
Regulations on Business Secrets Protection
is in the process of soliciting opinions from
public. Once the Regulations are enacted,
a better protection on business secrects
will be provided on business secrects.
Anti Unfair Competition
The PRC Anti Unfair Competition Law
provided protections on intellectual
properties and business secrets when such
matters are not covered by intellectual
property laws.
This is chapter three of the introduction of foreign investment law system
of China. It consists of the following subjects:
1. Foreign Investment Law System in China;
2. Key rules of PRC Foreign Investment Law which sets up the fundamental
system of foreign investment law;
3. What protections foreign invesment can obtain in China;
4. What compliance’s rules foreign investment should observe.
It is a part of my ebook Fashion Law in China.
Apeng Shang
Fashion Law in China
Part 1 Introduction of Foreign Investment Law in China

5. Chapter Four - Rules That Foreign Investment Should
Comply with
Routing reports
Routine reports should be made according
to the Measures on Information Reporting
of Foreign Investment.
Compliance in general
Labor and employment
Matters on labour, employment and social
insurance of employees should be in
compliance with the PRC Labor Law and
PRC Labor Contract Law.
Anti-Trust
Enterprises should comply with the rules of
anti-trust in developing their business
according to the PRC Anti-Trust Law.
Anti Unfair Competition
Enterprises should comply with the rules of
anti unfair competition according to the
PRC Anti Unfair Competition Law.
Anti Business Bribery
Enterprises should prevent from business
bribery according to relevant rules of PRC
Criminal Law and other regualtions.
Individual Information
Enterprises should comply with the rules of
PRC Individual Information Law.
Data Security
Enteprises should comply with the rules of
PRC Data Security Law.
Compliance in specific business
fields and specific industries
Cross Boarder E-Commerce
Enterprises engaging in cross boarder e-
commerce should comply with a series of
rules ranging from tax, intellectual property,
products quality, foreign currency and etc.
Zhejiang Jiang E-Commerce Commission
has provided a white paper on this issue,
which is a good guidance to enterprises.
National Security Review
It doesn’t occur unless the foreign
investment is huge and concerns important
products/services of the following fields:
military, IT, cultural industry and/or
financial industry.
Compliance rules for specific industries
such as costimic products, medicines and
medical device, food, hotel, telematics,
online games…
There are a series of rules and regulations
for these industries. I will explain them in
the later chapters.
This is chapter four of the introduction of foreign investment law system of
China. It consists of the following subjects:
1. Foreign Investment Law System in China;
2. Key rules of PRC Foreign Investment Law which sets up the fundamental
system of foreign investment law;
3. What protections foreign invesment can obtain in China;
4. What compliance’s rules foreign investment should observe.
It is a part of my ebook Fashion Law in China.
Apeng Shang
Fashion Law in China
Part 1 Introduction of Foreign Investment Law in China

6. Chapter One - Introduction of China’s Laws in Cybersecurity,
Data Security and Individual Information Protection
Cybersecurity
Laws and regulations
PRC Cybersecurity Law
Regulations on the Security Protection of
Critical Information Infrastructure
Cybersecurity Review Approach
Rules on Network Products Security
Vulnerability Management
Rules/Conventions of Specific Industries
Notice on telematics cybersecuirty and data
security (enacted by Ministry of Industry
and Information Technology
Guidelines for the construction of data
security standards systems in the
telecommunications and Internet industries
Regulatory data security management
approach (enacted by CBRC)
Guidelines for the assessment of age-
inappropriate reminders for minors for
online content
Corporate Social Responsibility
Management System for the Online Gaming
Industry
Data Security Governance Capability
Assessment Methodology
Convention on Self-Regulation of Network
Data Security in the Telecommunications
and Internet Industries
Data Secuirty
Laws and Regulations
PRC Data Security Law
Regulations on Management of Automotive
Data Secuirty
Approach on Secuirty Assessment of
Outbound Data Transfer (Draft for
Comments)
Rules/Conventions of Specific Industries
ISO37301 Compliance Management System
ISO27001 Information Security Management
System
Personal Information Protection
Laws and Regulations
PRC Personal Information Protection Law
Regulations on Protection of Childdren’s
Personal Online Information
Regulations on Protectin of Custemers’
Persona linformation of Telecom and
Internet Industries
Regulations on Scopes of Necessary
Personal Information taken by Mobile Apps
Guidance on Protectin of Online Personal
Information
Gudiance of Online Secuiry Practice
Standdard for Mobile Apps in Dealing with
Personal Information
Approach on Recogniation of Illegal
Collection of Personal Information by Apps
Approach on Security Assessment of
Outbound Personal Information Transfer (
Draft for comments)
Judicial Interpretaions
Provisions on Relevant Issues on the
Application of Laws in Hearing Civil Cases
Related to the Application of Facial
Recognition Technology in Processing
Personal Information
Part 2 Introduction of China’s Laws on Data Security and
Personal Information Protection
Fashion Law in China