Member Article

The Ministry of Commerce issued the Provisional Measures on Tasks Related to Complaints from Foreign Investment Enterprises on 1 September 2006. Effective from 1 October 2006, the Measures establish a procedure pursuant to which foreign investment enterprises (FIEs) and foreign investors who feel their lawful rights have been infringed by an administrative agency may lodge a formal complaint. The Measures provide for the establishment of the National Centre for Complaints from Foreign Investment Enterprises (the “National Centre”) and the Office for Coordination of Complaints from Foreign Investment Enterprises of the Ministry of Commerce (the “Office”), in which together local government agencies (jointly the “Complaint Processing Agencies”) shall handle complaints by foreign investment enterprises (“FIEs”) and its foreign investors (the “Complainants”) against administrative authorities.

Filing complaints
If an FIE or foreign investors feels its lawful rights have been infringed by an administrative agency, it may submit the matter to the Complaint Processing Agencies to coordinate and resolve the matter. Complainants may also report matters, make proposals, provide ideas or submit a request to the Complaint Processing Agencies. All complaints must be submitted in writing and must include basic information about the complaint and evidence supporting it. Only a Chinese version of the complaint shall be accepted. The Measures stipulate that anonymous complaints and those that have already been adjudicated or accepted for disciplinary examination shall not be accepted. Certain other complaints as described in the Measures shall also be accepted for handling by the Centre.

Processing complaints
The Measures state that the National Centre shall process complaints that:

• are filed by the Complainant directly with the National Centre;

• relate to matters that span across provincial borders; and

• may have a “major influence” (no guidance is given on the meaning of the term).

The National Centre is responsible for training, research and survey, administration and coordination related to the complaint handling process nationwide. The local Complaint Processing Agencies are departments of local authorities that have been authorised to accept and handle complaints. The National Centre may transfer complaints that it has received to a local Complaint Processing Agency if the complaint falls within its jurisdiction, or to the Office if the complaints involve multiple departments or industries.

The Office shall be responsible for coordinating and supervising complaint-related work nationwide, handling complaints from foreigninvested enterprises submitted by the National Centre involving multiple departments and industries, setting the principles to resolve disputes, and improving related laws and regulations.

After a complaint is accepted, the relevant Complaint Processing Agency shall investigate the complaint and keep the Complainant updated on its status. The Agency shall process the complaint within thirty working days (additional time will be allowed for complicated complaints, complaints with no cooperation of the parties involved, etc.). The Complaint Processing Agencies shall take the following actions when processing the complaint:

• issue a letter of suggestions to Complainant and the relevant authorities for a solution to the issue stated in the complaint and urge the resolution of the matter;

• coordinate with the authorities involved;

• transfer the case to a local Complaint Processing Agency or relevant department for processing;

• other methods that the Complaint Processing Agency/Office sees appropriate.