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Draft Foreign Investment Law Proposes Fundamental Changes to the PRC Foreign Investment Regime

On January 19, 2015, the PRC Ministry of Commerce (“MOFCOM”) published a draft of the proposed new Foreign Investment Law (the “Draft FIL”), which is open for public comments until February 17, 2015. At the same time, MOFCOM published an accompanying explanatory note of the Draft FIL (the “Explanatory Note”), which contains important information about the Draft FIL, including its drafting philosophy and principles, main content, plans to transition to the new legal regime and treatment of the variable interest entity (“VIE”) structure.