Facilitating foreign investment in China: new minerals and coal legislation

China's development into perhaps one of the largest economy in the world is creating an enormous demand for minerals and energy to fuel the country's growth. The choices for China are to either increase imports, at a significant cost in foreign exchange, or develop its own resources. For the latter option, China would require a relatively attractive foreign investment regime. Laws have recently been put in place to provide such a regime. The two pieces of legislation, adopted in August 1996 are amendments to the Mineral Resource Law and the Coal Law. The changes could provide a legal basis for foreign participation in the exploration and exploitation of China's mineral resources. The background to these legal amendments as well as some practical issues and the perceived benefits for the investors are outlined