Zhang Yesui (C), spokesperson for the Second Session of the 13th National People's Congress (NPC), attends a press conference on the agenda of the session and the work of the NPC at the Great Hall of the People in Beijing on March 4, 2019 (XINHUA)
The draft foreign investment law will be submitted to the Second Session of the 13th National People’s Congress (NPC), China’s top legislature, on March 8 and put to a vote on March 15, according to Zhang Yesui, a spokesperson for the meeting, on March 4.
“The new legislation will bring fundamental changes to China’s foreign investment management system,” Zhang said at a press conference. “It will make domestic investment environment more open, transparent and expectable to provide a strong legal guarantee for all-round opening up.”
Since the 1980s, three laws have been adopted to manage foreign investment in China, namely the Law on Chinese-Foreign Equity Joint Ventures, Law on Non-Equity Joint Ventures (or Contractual Joint Ventures) and Law on Wholly Foreign-Owned Enterprises. However, these laws are not fully sufficient for China’s expanding opening up.
Once adopted, the new law will replace the previous three and become the country’s fundamental foreign investment law, Zhang said.
According to the draft law, China will push ahead with the pre-establishment national treatment plus a negative list approach to manage foreign investment and streamline approval procedures.
Areas where foreign investment is prohibited or restricted will be detailed in the negative list. The practice will provide a level playing field for investors from home and abroad.
On January 30, the Standing Committee of the NPC made the decision to submit the draft foreign investment law to the annual session of the NPC, which opened in Beijing on March 5.
