The PRC Regulation of Foreign Direct Investments.

Since the 1980s, China has attracted foreign investments in a well-reasoned way with its Open Door Policy. Over time, an initial policy of openness has been replaced by a careful selection of foreign investments capable of contributing to China’s economic growth or know-how. In addition, the regulations governing foreign investments, which were poorly structured and diversified according to the type of legal instrument chosen by investors, have been replaced by a single law, the Foreign Investment Law (2020) which is well-structured and is applied to both Chinese and foreign investors. As foreign investment increases and the geo-economy becomes increasingly complex worldwide, China has consequently equipped itself with sophisticated regulatory tools such as the Measures for Security Review of Foreign Investment (2020), which under certain conditions can block foreign investment.