China has been playing an increasingly important role in the international market which has attracted many businesses from all over the world. However, owing to her unique cultural and social background and her civil law tradition, it is difficult for foreign business people and their attorneys to fully understand Chinese law and the investment environment. This lecture will introduce the general legal framework regulating foreign investment in China and the issues and new developments in the business law area. It will cover the business forms that foreign investors may take, the industries that Chinese government encourages foreign investors to engage in, and the process of establishing and liquidating a foreign invested enterprise in China.