Measures on Handling Complaints from Foreign Invested Enterprises Released
ISSUING AUTHORITY:
Ministry of Commerce
DATE OF ISSUANCE：
August 31, 2020
EFFECTIVE DATE:
October 1, 2020
On August 31, 2020, the Measures on Handling Complaints from Foreign Invested Enterprises (“Measures”) was promulgated by the Ministry of Commerce, which became effective on October 1, 2020. The Measures is an important regulation for the implementation of both the Foreign Investment Law of the People’s Republic of China and its implementation regulations.
In response to the suggestions put forward by the American Chamber of Commerce in China, the European Union Chamber of Commerce in China, the US-China Business Council, the China Association of Enterprises with Foreign Investment and the China Council for International Investment Promotion, etc. for broadening the scope of complainants, the Measures introduce the following changes :
● Both foreign investors and foreign-invested enterprises will be able to lodge complaints
● Complaints may also now be made in relation to administrative actions that affect the investment environment
● Complaints about the investment environment may also be made by chambers of commerce and other associations.
With regard to the suggestions of the World Bank, the European Union Chamber of Commerce in China and the China-Britain Business Council on allowing complainants to file complaints with the superior complaint handling authority in case of dissatisfaction with the complaint handling results, the Measures clearly provides for circumstances where the complainants object to the decision by the local complaint handling authority for “not accepting the complaint” or disagree with the complaint handling results.
The Measures has five chapters: general provisions, complaint submission and acceptance, complaint handling, complaint management system and supplementary provisions, comprising a total of 33 articles. The Measures mainly has the following highlights:
● Build a multi-level complaint handling mechanism
● Expand the subject and scope of complaints
● Provide comprehensive protection mechanism for the rights and interests of complainants
● Establish a practical complaint handling system
● Establish a sound complaint management and feedback system
At present, COVID-19 is spreading globally, unilateralism and protectionism are rising, and the tide of globalization is receding. The promulgation of the Measures is an important action in stabilizing foreign investment as well as enhancing foreign investors’ expectations and confidence in China. It demonstrates China’s long-term determination in strengthening protection of the legitimate rights and interests of foreign investors and the continuous optimization of business environment for foreign investors in China.
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