In order to create a favorable investment environment and to encourage overseas firms to invest in China, since the year of 1979 the Chinese government has gradually set up a relatively complete legal system, and constituted a foreign investment policy system, which mainly includes industrial policies, regional policies, tax policies and financial polices.

The main laws and regulations for foreign investments in China include:

1 .1 Major Foreign Investment Laws and Regulations

a) The law of P.R.C on Chinese-Foreign Equity Joint Ventures and its implementation regulations;
b) The law of P.R.C on Chinese-Foreign Contractual Joint Ventures and its implementation regulations;
c) The law of P.R.C on Wholly Foreign-Owned Enterprise and its implementation regulations;
d) The law of P.R.C on Foreign-invested enterprises, the income tax and its implementation regulations;
e) The Provisions on Guiding Foreign Investment Direction; Industrial Catalogue for Foreign Investment; Catalogue of Advantageous Sectors for Foreign Investment in Central and Western Regions;
f) The law of P.R.C on the Protection Taiwan Compatriots' Investment.
 
Note: the related laws and regulations also apply to the investments from Hong Kong, Macao and Taiwan Province.

1 .2 General Laws and Regulations

a) The Company Law of the People's Republic of China;
b) The Contract Law of the People's Republic of China;
c) The Insurance Law of the People's Republic of China;
d) The Arbitration Law of the People's Republic of China;
e) The Labor Law of the People's Republic of China;
f)  The Provisional Regulations of the People's Republic of China on value-added Tax;
g) The Provisional Regulations of the People's Republic of China on Consumption Tax;
h) The Provisional Regulations of the People's Republic of China on Business Tax.

1 .3 International Treaties

(1) Bilateral Investment Treaties
(2) Bilateral Agreement on the Avoidance of Double Taxation