Contexts
Legal
Translation Equivalents
- Foreign invested business entity
- Foreign investment
Analysis
In Chinese foreign investment law, the term foreign invested business entity is an entity that has both received foreign investment and has been registered as an entity that has foreign investment. A main rationale for this approach is that domestic Chinese citizens can have their investments fully qualified as foreign investments, thus there is not necessarily a foreign investor. This concept is not known to American law, where the US Model Bilateral Investment Treaty and other investment treaties refers only to the “investor” and “investment.” In practice, if a reader can’t speak Chinese, the aspects of the foreign investment law about qualifying Chinese citizens as foreigners are probably not relevant, and the meaning of the document will actually be clearer to a reader if referring to the entity as the “foreign investment.” To learn more, see our Article about the Chinese law on this subject.