Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 36

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 36
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 PRC, including, among others, that
local governments shall abide by their commitments to the foreign investors; foreign-invested enterprises are allowed to issue stocks
and corporate bonds; except for special circumstances, in which case statutory procedures shall be followed and fair and reasonable compensation
shall be made in a timely manner, expropriation or requisition of the investment of foreign investors is prohibited; mandatory technology
transfer is prohibited; and the capital contributions, profits, capital gains, proceeds out of asset disposal, licensing fees of intellectual
property rights, indemnity or compensation legally obtained, or proceeds received upon settlement by foreign investors within China, may
be freely remitted inward and outward in RMB or a foreign currency. Also, foreign investors or foreign investment enterprises should
be imposed legal liabilities for failing to report investment information in accordance with the requirements.

This new Foreign Investment Law has provided a
more transparent foreign investment environment in China. Particularly, this new law has changed the regulatory procedure from a pre-approval
requirement to the negative list system, which means the foreign invested company may engage in any business activities that are not in
the negative list and pre-approval is not required anymore.

Negative List Relating to Foreign Investment

Investment activities in the PRC by foreign
investors are principally governed by the Special Administrative Measures (Negative List) for Admission of Foreign Investment and
the Catalog of Industries Encouraging Foreign Investment promulgated and as amended from time to time by MOFCOM and National
Development and Reform Commission (the “ NDRC”). In June, 2020, the MOFCOM and the NDRC promulgated the Special
Administrative Measures (Negative List) for Foreign Investment Access (2020 Version), or the Negative List, which was further
replaced by the Special Administrative Measures (Negative List) for Foreign Investment Access (2024 Version), as promulgated by the
MOFCOM and the NDRC in September 2024 and became effective on November 1, 2024. Industries listed in the Negative List are divided
into two categories: restricted and prohibited. Industries not listed in the Negative List are generally deemed as constituting a
third “permitted” category. Establishment of wholly foreign-owned enterprises is generally allowed in permitted
industries. Some restricted industries are limited to equity or contractual joint ventures, while in some cases Chinese partners are
required to hold the majority interests in such joint ventures. In addition, restricted category projects are subject to
higher-level government