Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 352

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 352
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, and on December 26, 2019, the State Council promulgated the Implementing Rules of the Foreign Investment Law (the “Implementing Rules”), both of which became effective on January 1, 2020. The Foreign Investment Law replaced the trio of laws regulating foreign investment in China: the Sino -foreignEquity Joint Venture Enterprise Law, the Sino -foreignCooperative Joint Venture Enterprise Law and the Wholly Foreign -investedEnterprise Law. The Foreign Investment Law stipulates that “foreign investments” refer to any direct or indirect investment activities conducted by any foreign individual, enterprise, or organization (collectively referred to as “foreign investors”) in the PRC, which includes any of the following circumstances: •foreign investors setting up foreign -investedenterprises in China severally or jointly with other investors; •foreign investors acquiring shares, equity, properties or other similar interests thereof within the PRC; •foreign investors investing in new projects in the PRC severally or jointly with other investors; and •foreign investors investing through any other methods under laws, administrative regulations, or provisions prescribed by the State Council. The Implementing Rules introduce a see -throughprinciple and further provide that foreign -investedenterprises that invest in the PRC shall also be governed by the Foreign Investment Law and the Implementing Rules. The Foreign Investment Law stipulates that a “negative list” is applied in certain industry sectors. The “negative list” set out in the Foreign Investment Law classifies the relevant prohibited and restricted industries into the Catalog of Prohibitions and the Catalog of Restrictions, respectively. Where any foreign investor directly or indirectly holds shares, equity, properties or other interests in any enterprise within the PRC, such enterprise is not allowed to invest in any sector set out in the Catalog of Prohibitions. Foreign investors may invest in sectors set out in the Catalog of Restrictions, subject to certain conditions. Foreign investors may invest in any sector beyond the “negative list” and shall manage such investments on the same basis as domestic investments. On December 27, 2021, the NDRC and MOFCOM promulgated the Special Entry Management Measures (Negative List) for the Access of Foreign Investment (2021 version) (the “2021 Negative List”), which took effect on January 1, 2022. In addition, the NDRC and MOFCOM promulgated the Encouraged Industry Catalogue for Foreign Investment (2022 version) (the “Encouraged Industry Catalogue”),