What is the Foreign Investment Complaint Mechanism?

What is the Foreign Investment Complaint Mechanism?

– Legal Tip of the Week – FICM


September, 2021

There are various channels available to foreign investors in China if they believe their lawful rights and interests have been infringed upon by an administrative body.

The typical remedies available include initiating administrative reconsideration procedures or administrative litigations.

A third option is to file a complaint to the Foreign Investment Complaint Mechanism (FICM).

Implemented as of October 1st, 2020, foreign investors may lodge complaints against administrative actions. These complaints will be handled at either the national complaint center or the local complaint centers.

The FICM is not just for resolving complaints and disputes. The mechanism provides another channel for communication between foreign investors and the Chinese government, and foreign investors may raise concerns, requests, or suggestions.

What does this mean for foreign investors in China?

“The FICM sends a clear signal to foreign investors about the Chinese government’s determination to protect and thus attract foreign investments.”

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