SPC Released New Regulations for another Optimization of Foreign Investment Environment

The Supreme People's Court (SPC) released on August 16 the "Regulations on Several Issues Concerning the Trial of Disputes of Foreign-invested Enterprises". The "Regulations" herein in the process of China's further reform and opening up became another piece of preferential news for numerous foreign-invested enterprises.

The "Regulations" includes: explicitly prescribing the confirmation rules for contract effectiveness without the administrative examination and approval; explicitly providing for the rules for handling equity transfer without examination and approval; explicitly providing for the rules for handling the disputes over anonymous investment by foreign-invested enterprises; and specifying the rules for confirming the liabilities based on the defective contribution of shareholders of foreign-invested enterprises.

Moreover, the "Regulations" spells out the handling of disputes over stock pledge contract of foreign-invested enterprises, disputes over equity of foreign-invested enterprises triggered by equity alteration for false information and disputes over consent right or the right of preemption in the stock transfer by shareholders of foreign-invested enterprises.