1. Foreign Trade & Investment Law
Tokhtar Akhmadiyev
Aru Isbulatova
Anar Kuangaliyeva

2. Barely 35 years ago china was a negligible and isolated player in the world economy. Although Chinese scholars boasted that china traded with 160 countries in 1976, the nature of foreign trade was then import-substitution to facilitate the realization of self-reliance, and so emphasis was placed on the importation of complete planed and equipment for heavy industry.

3. Most importantly, its consistent double-digit growth rate in the last many years has also made the Chinese economy the fastest growing economy in the world for the longest period in modern world economy history. Over the last 33 years ( ), the average GDP growth rate in China was 9,8 %, whereas for the same period of time the world average growth rate was 2,8 %. Its per capita GDP increased from US$190 in 1978 to US$5,680 in 2012, transforming China from a low-income economy to an upper-middle-income economy under the World Bank criterion. It over took Japan as the second largest economy in the world in 2010, and according to the OEGD, China could over took the US as a largest economy by 2016, or has already done so if assessed by purchase parity power.

4. A Process of Gradual Transformation
The “open door” policy was first introduced in confined areas, partly reflecting the need to allow the Central Government to retain tight control of the planned and gradual implementation of the policy and partly due to the lack of knowledge, experience and confidence in dealing with international economic relations after a long period of isolation. The establishment of the Shenzhen Special Economic Zone in 1979 signified the beginning of this practice in the post Mao China. Essentially, “special” economic zones or areas have served the purpose of testing within some confined areas the experiences of Taiwan and other Asian countries in the operation of Export Processing Zones, and subsequently applying the successful experience to the whole nation.

5. Law on Foreign Trade
Evolution of the Legal Regime Governing Foreign Trade
The establishment of the State Commission for the Control of Import and Export Affairs in July 1979 signified the beginning of the reform of the foreign trade system. Since then various reforms in the trading system have been carried out, by way of granting trading powers to local governments and to enterprises, and through the reform of the licensing and quota systems. The initial goals of reform were to achieve the following:
The separation of government administration from enterprise management, with the original national trading corporations to be replaced by a much larger number of enterprises with foreign trade powers directly under the Ministry of Foreign Economic Relations and Trade, and with specialised trading agencies under the State Council and other ministries to be established;
Decentralization of authority of the import and export corporations to the provinces and the municipalities with the establishment of local foreign trade corporations;
The granting of trading authority directly to certain major enterprises;
The reduction of items and under state quota or licensing control.

6. The regulatory Framework
As mentioned above for many years the regulatory framework for foreign trade consisting of many overlapping or even conflicting “Interim” regulations and measures, had been highly complicated. The adoption of the long-awaited Foreign Trade Law in 1994 pushed the legal framework towards a more transparent, coherent and specified system for practical purposes.

7. General Principles:
When the FTL was adopted, it not replace the previously existing regulations, not did it provide its own detailed rules. As was pointed out by the then Minister, Wu Yi, the Law only codified fundamental principles and policies and established a rough administrative framework, with the details to be gradually worked out.
2004 The new regime revised FTL, though still only containing very basic principles but aided be the more detailed State Council regulations, now provides some clearer guidance for the administration and operation of the law. The FTL defines foreign trade as the import and export of goods and technology and international trade services.

8. A Unified System for Fair and Free Trade
Under the unified system, the Ministry of Commerce (MOC) under the State Council is designated as the overall and principal authority in charge of foreign trade throughout the whole country.
On paper, the formal regulatory functions of the State concerning trade are to be realized through measures against monopoly, dumping and subsidy, and imposition of safeguarding measures. These are clearly measures allowed by WTO agreements, and their regulation is carried out by a national framework which includes the Law against Unfair Competition (1993), Anti-Monopoly Law of the PRC (2007), the Anti-dumping Regulations of the People’s Republic of China (2001, revised 2004), the Anti-subsidy Regulations of the and People’s Republic of China (2001, revised 2004), and the Regulations of the People’s Republic of China on Safeguard Measures (2001, revised 2004).

9. Operational Mechanisms
A Unified National Framework Existing at three levels and as such the regulatory framework looks rather complicated and even confusing. However, legislation at each level seems to serve certain specific functions. Generally speaking, the primary legislation (i.e. the FTL) lays down the governing principles. These principles, though generally conforming WTO principles, are hardly operational without further implementing rules. At the second level the State Council regulations then set out specific mechanisms and define specific authorities for implementing the principles contained in the national legislation.

10. Different Treatment
Although trade regulations are nationally unified, differentiated treatment is according to different commodities or technologies. At least three kinds of different exist.
First, goods and technologies are classified into those whose import and export are freely allowed, restricted or prohibited, and different rules apply accordingly.
Secondly, trading or certain commodities is only allowed by designated enterprises, or is monopolized by state trading enterprises, and specific rules exist to regulate such trading.
Finally, special rules continue to govern the import and export commodities, such as machinery and electronic products.

11. Trade Barriers & Government Control
Tariff Control
Non-Tariff Control
Is governed by the Customs Law, the Import and Export Tariff Regulations, and the Customs Import and Export Tariff Schedule, and administered by the General Administration of Customs and the Customs Tariff Commission directly under the State Council.
Non-tariff barriers to trade also exist in all countries. Some are more regulated, others are more ingenious in their-disguise. In China the two primary means for the control and restriction of trade were for a long time restrictions on the right to trade economic policy.

13. 4 – Direct Foreign Investment
4.1 The Development of Foreign Investment Law and Policies
4.2 The Regulatory Framework
4.3 Equity Joint Ventures (EJVs)
4.4 Contractual (Co-operative) Joint Ventures (CJVs)
4.5 Wholly Foreign-owned Enterprises (WFOEs)
4.6 Foreign Investment in the Service Sectors

15. 4.2 The Regulatory Framework
4.2.1 Principal of Foreign Investment Defined by National Law
4.2.2 Changing Policies to Meet Changing Needs
4.2.3 The Transforming Examination and Approval Scheme
4.2.4 Ad hoc and Transitional Rules on Investment in the Service Sectors
4.2.5 Locality Variations

16. Thank you for attention!