The enactment of China’s new foreign investment law is progressing well, as the draft has been submitted for further discussion by the central government, the Ministry of Commerce announced on Nov 2.
The move illustrated the country’s desire to accelerate the modernization of its market access system, as well as strengthen the use of fair and transparent market principles.
Gao Feng, spokesman for the ministry, said the law is expected to serve as a basic guideline for the reform of regulations on foreign direct investment.
“The government will protect the legitimate rights of foreign investors and foster a stable, transparent and law-based business environment,” Gao said at a regular news conference in Beijing.
The ministry will collaborate with the Legislative Affairs Office of the State Council to speed up the lawmaking pace in the next stage, he added.
For the past several years, China has been ramping up efforts to expand investment access and unify laws and regulations while applying stable, transparent and predictable policies to foreign investment.
The government has already introduced a negative-list approach in 11 pilot free trade zones to simplify the process for foreign investors in setting up their business presence in China.
The negative list specifies investment sectors that are off-limits to foreign investors and opens industries not on the list, providing equal treating to overseas and Chinese companies.
Gao said the ministry will replicate nationwide the negative-list approach used in its free trade zones.
The negative list covers 15 sectors such as mining, leasing and financing. Among the sectors, 40 categories and 95 special management measures are included.
Wei Jianguo, vice-president of the China Center for International Economic Exchanges, said the move provides a consistent national treatment for market entrance and reflects a major step forward in liberalizing the Chinese market for overseas investors.
