China’s foreign direct investments regulation in a change of era

This chapter traces the evolution of China’s foreign investment regime from the 1979 Joint Venture Law to the 2019 Foreign Investment Law, highlighting its role in China’s economic transformation and legal modernization. It argues that the 2019 reform completed the transition from a dual regulatory system to a unified framework based on national treatment and negative lists, substantially improving market access for foreign investors. However, this liberalization coincided with a profound shift in the global geopolitical environment. As national security increasingly shapes investment regulation worldwide, China faces the paradox of pursuing greater openness while operating in an international system marked by growing strategic rivalry and investment restrictions.