New foreign investment law to bring China better business environment: expert
By Li Weihong and Yang Xun
from People’s Daily
China’s newly-drafted foreign
investment law will lay a solid legal foundation for China to provide a better
business environment for foreign investment, and to move towards a new pattern
of all-round opening up, a Chinese expert said in an interview with People’s
Daily.
The law, which is undergoing
review by national legislators at the ongoing session of the 13th National
People's Congress (NPC), is expected to be put up for a vote on March 15. The
NPC Constitution and Law Committee held a plenary session on March 11 to review
the collected suggestions on the draft from the deputies.
If adopted, the new law will
replace three existing statutess on Chinese-foreign equity joint ventures,
non-equity joint ventures and wholly foreign-owned enterprises to serve as
China’s basic law on foreign investment.
Giving a priority to protect
and promote foreign investment, the draft upgrades all of China’s reforming
measures over foreign investment since 2013, especially those related to the
system of national treatment plus a negative list, to law provisions, said Kong
Qingjiang, a drafter of the new law.
The new law can also offer
legal guarantee for the outcomes from a new round of reforms and opening-up,
added Kong, a law professor from China University of Political Science and Law.
As a fundamental law on
investment and foreign capital, the new draft has included the content on how
to protect, promote and manage foreign investment, the professor pointed out.
By putting absorbing and
protection of investment on its top agenda, the law meets the requirements in
transforming government’s role, and deepening reforms that delegate power,
improve regulation, and upgrade services, he said, adding that it is helpful in
creating a favorable business environment.
The draft also prioritizes
the rights of investors, but shrinks that of governmental departments. The
22th, 23th and 24th articles of the draft stipulate that administrative organs
and their staff are not allowed to force the investors to transfer their
technologies with administrative means.
Governmental departments at
various levels are asked to formulate guidelines and regulations on foreign
investment based on law provisions and rules, and prohibited to damage the
legitimate rights and interests, or add obligations of foreign investors
without providing legal credentials.
They are also banned to set preconditions
of market entry and exit, or interfere in the legal business operation of the
investors without backup of laws and administrative rules.
All of these requirements for
governmental departments stand for China’s efforts in rule of law, Kong pointed
out.
Members
of the 13th National Committee of the Chinese People's Political Consultative
Conference (CPPCC) are discussing the draft foreign investment law in a panel
meeting. (Photo by Zhou Can from Yunnan Daily)
New foreign investment law to bring China better business environment: expert
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