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China Focus: China mulls unified foreign investment law
Source: Xinhua     Date: 2018-12-29

A draft law on foreign investment has been submitted to a bimonthly session of the National People’s Congress (NPC) Standing Committee, which opened Sunday.

Once adopted, the unified law will replace three existing laws, namely the laws on Chinese-foreign equity joint ventures, non-equity joint ventures (or contractual joint ventures) and wholly foreign-owned enterprises.

The current laws can hardly catch up with the changing economic situation, as China strives to build new institutions and open its economy. But the new law will guarantee China’s opening-up in the next phase and more effective utilization of foreign investment, analysts said.

Necessary mechanisms on the facilitation, protection and management of foreign investment are written into the draft law, such as the pre-establishment national treatment and negative list management, equal supportive policies, and equal participation in government procurement.

China has adopted a foreign investment administration model of pre-establishment national treatment plus negative list. The move marks an institutional reform in response to new developments in economic globalization and changes in international rules for investment, according to a white paper, entitled China and the World Trade Organization, published in June.