“Measures on Handling Complaints from Foreign-invested Enterprises” will come into force on 1 Oct. 2020

Article 26 of the “Foreign Investment Law” stipulates that the State shall establish a complaint mechanism for foreign-invested enterprises. Article 29 of the “Implementation Regulations for the Foreign Investment Law” stipulates that the commerce administrative authority of the State Council, departments or agencies designated by local People’s Governments of county level and above shall improve upon the complaints handling work rules, improve upon the complaints handling methods, and specify the complaints handling timeframe. Recently, the MOC has released the “Measures on Handling Complaints from Foreign-invested Enterprises” (hereinafter referred to as the “Measures”). There are four key aspects.

1. To expand the scope of complaints.

The “Foreign Investment Law” and the “Implementation Regulations for the Foreign Investment Law” have stipulates that the complaints shall be the administrative acts which are considered that the administrative authorities have infringed the legitimate rights and interests of the foreign-invested enterprises and foreign investors. The “Measures” further prescribes that the complainants could reflect the problems existing in the investment environment to the complaint handling body and suggest the improvement of the relevant policies and measures.

2. To establish and improve the complaint mechanism.

The “Measures” prescribes that at Central Government level, the MOC shall establish an inter-ministerial joint conference system with the relevant departments of the State Council, and establish the National Complaint Centre for foreign-invested enterprises; at local level, local People’s Governments of county level and above shall designate departments or agencies to handle local complaints.

3. To clarify the complaints handling work rules

The “Measures” has prescribes that rules on filing and acceptance of complaints, handling of complaints, time requirements, handling the disputes on the resolutions and etc.. Such as Article 10 prescribes the methods to file a complaint that is the complainant shall submit written materials, which could be submitted on site or by letter, facsimile, e-mail, online application, etc. Article 15 prescribes that the complaint handling body shall, within 7 working days after receipt of the complete complaint materials, decide whether to accept the complaint or not. Article 19 prescribes that normally, the complaint handling body shall, within 60 working days after acceptance of a complaint, complete the handling of the complaint. Where a complaint involves multiple departments and is complex, the handling period may be extended appropriately.

4. To enhance the protection on legitimate rights and interests.

(1) Article 8 prescribes that the complaints shall not affect the complainant’s right to file an administrative reconsideration, institute an administrative proceeding or any other proceedings. Regarding this, it is recommended for the complainant to make full use of both methods. (2) Article 29 prescribes that the complaint handling body and the staff shall protect the complainant’s trade secrets, confidential business information or personal privacy.