Pursuant to Article 40 of the Foreign Investment Law, foreign investors may be subject to more restrictive measures than established in the Foreign Investment Law and subordinate acts and regulations in the absence of 'reciprocity' for Chinese investors in the investor home jurisdiction.
"Article 2. This Law shall apply to foreign investment within the territory of the People's Republic of China (hereinafter referred to as the territory of China).
The term "foreign investment" as mentioned in this Law refers to investment activities conducted directly or indirectly in China by foreign natural persons, enterprises or other organizations (hereinafter referred to as foreign investors), including the following situations:
(1) A foreign investor establishes a foreign-invested enterprise in China alone or jointly with other investors;
(2) Foreign investors acquire shares, equities, property shares or other similar rights and interests of enterprises within the territory of China;
(3) Foreign investors alone or jointly with other investors invest in new projects in China;
(4) Investment in other forms prescribed by laws, administrative regulations or the State Council.
The term "foreign-invested enterprises" as mentioned in this Law refers to enterprises wholly or partly invested by foreign investors and registered and established within the territory of China in accordance with Chinese laws.
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Article 4. The state implements a pre-establishment national treatment plus negative list management system for foreign investment.
The pre-establishment national treatment referred to in the preceding paragraph refers to the treatment given to foreign investors and their investments at the stage of investment access no less than that given to domestic investors and their investments; Special access management measures for investment implementation. The state shall give national treatment to foreign investment outside the negative list.
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Chapter IV - Investment Management
Article 28. Foreign investors are not allowed to invest in fields that are prohibited from investing in the negative list for foreign investment access.
Foreign investors should meet the conditions stipulated in the negative list to invest in the areas where investment is restricted by the negative list for foreign investment access.
Fields outside the negative list for foreign investment access shall be managed in accordance with the principle of consistency between domestic and foreign investment.
Article 29. Foreign investors who need to go through investment project approval and filing shall follow the relevant state regulations.
Article 30. Foreign investors who invest in industries and fields that require licensing according to law shall go through relevant licensing procedures according to law.
Relevant competent departments shall review foreign investors' applications for permits in accordance with the same conditions and procedures as those for domestic investment, unless otherwise stipulated by laws and administrative regulations.
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Article 35 The state establishes a foreign investment security review system to conduct security reviews of foreign investments that affect or may affect national security.
The security review decision made in accordance with the law is final.
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Chapter VI - Supplementary Provisions
Article 40. If any country or region adopts discriminatory prohibition, restriction or other similar measures against the People's Republic of China in terms of investment, the People's Republic of China may take corresponding measures against the country or region according to the actual situation.
Article 41. If the state has other regulations on the management of foreign investors investing in banking, securities, insurance and other financial industries within the territory of China, or investing in securities markets, foreign exchange markets and other financial markets, such regulations shall prevail[...]'" (Foreign Investment Law of the People's Republic of China of 15 March 2019, as amended)
Foreign Investment Law of the People's Republic of China of 15 March 2019, as amended
[<a href="http://www.gov.cn/xinwen/2019-03/20/content_5375360.htm">Law</a>]