New Policies for Work on the Mechanisms for Complaints by Foreign-invested Enterprises

Monday, 07 September 2020 11:04

The Ministry of Commerce ("MOFCOM") has recently announced the revised Measures for the Work on Complaints from Foreign-invested Enterprises (the "Measures") for implementation as of October 1, 2020. Shanghai Dongjin finds the main points as follows.

This provision aims to handle the complaints of the foreign-invested enterprises timely and efficiently, protect the lawful rights for their investments and keep improving the investing environment for foreign investment.

The complaining system is suitable for the situation:

  • A foreign-invested enterprise or a foreign investor can apply to agencies that handle complaints for coordination if they finds its lawful right is infringed by the administrative actions from the authority (including the organization which is authorized the management power for public affairs by laws and regulations) or its staffs;
  • The companies also can report to the authorities that they are having problems related to the investment environment, and may suggest the government improve relevant policies and measures.

However, the complaints are not included the civil and the commercial disputes between foreign invested enterprises, their investor and other natural persons, legal persons or organizations.

The Measures put forward that it is necessary to establish an inter-ministerial joint conference system for the work on complaints from foreign-invested enterprises at the central level, and set up a National Complaint Center for Foreign-invested Enterprises; at the local level, local governments at or above the county level should designate the relevant departments or agencies to be in charge of handling local complaints.

In order to effectively handle the work on complaints at the central and local levels, the Measures stipulate in details the systems for file management, information reporting, regular supervision and inspection, and rights and interests protection proposals in respect of complaint work.

The Measures also stipulate that the filing of a complaint by the complainant shall not prejudice the complainant's right to apply for administrative reconsideration or file an administrative lawsuit; complaint handling agencies are required to take effective measures to protect the complainants' trade secrets, confidential commercial information and individual privacy; and no entity or individual may suppress or retaliate any complainant.

If you want to read the complete article, you can refer to the below link (in Chinese only):

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Mr. Mike Chang

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