Legal analysis: Foreign direct investment generally includes the direct establishment of foreign-funded enterprises, Sino-foreign joint ventures and Sino-foreign cooperative enterprises, as well as equity mergers and acquisitions and asset mergers and acquisitions. The most common way of indirect foreign investment is to invest in China by setting up foreign-invested enterprises or investment platforms. In other words, first set up an investment subject or platform, and then invest through this subject or platform. Investors can be foreign-invested enterprises or foreign-invested enterprises specializing in investment.

Legal basis: Article 41 of the Regulations on Foreign Exchange Control in People's Republic of China (PRC), if foreign exchange is remitted into China in violation of regulations, the foreign exchange control authorities shall order it to make corrections and impose a fine of less than 30% of the illegal amount. If the circumstances are serious, a fine of not less than 30% of the illegal amount but not more than the equivalent value shall be imposed. Illegal settlement of foreign exchange shall be ordered by the foreign exchange administration to redeem the foreign exchange funds illegally settled, and a fine of less than 30% of the illegal amount shall be imposed.