Page 8 - THE SOUTH CHINA BUSINESS JOURNAL
P. 8
ver Story
CChhiinnaa ttoo RReevviissee
FFoorreeiiggnn IInnvveessttmmeenntt LLaaww
TThhee NNeeww LLaaww PPrroommootteess NNaattiioonnaall TTrreeaattmmeenntt,,
EEnnddss MMaannddaattoorryy TTeecchhnnoollooggyy TTrraannssffeerr aanndd
OOppeennss GGoovveerrnnmmeenntt PPrrooccuurreemmeenntt ttoo FFIIEEss
On December 23, the draft “Foreign Investment
Law” was formally submitted to the Seventh
Session of the Standing Committee of the National
People's Congress for consideration. It is expected
to replace the "three foreign laws" formulated in
the early years to become the basic law in the
field of foreign investment, and further expand
the external situation for the new situation.
Open, active and effective use of foreign capital
provides a more powerful rule of law guarantee.
Statistics show that as of the end of November
2018, China had established a total of 950,000
foreign-invested enterprises based on the "three
foreign laws", and the actual use of foreign
capital had exceeded 2 trillion US dollars. Foreign
investment has been a major factor in China's rapid
economic and social development.
The draft specifically addresses the
protection the intellectual property rights
of foreign investors and foreign-invested
enterprises. It encourages technical
cooperation based on voluntary principles
and business rules. The draft stipulates that the
conditions for technical cooperation in the process
of foreign investment shall be determined through
negotiation between the parties to the investment,
and the government administrative organs and their
staff shall not use administrative means to force the
transfer of technology.
In the early days of reform and opening up, China
formulated the "Sino-foreign Joint Venture Enterprise
Law", the "Foreign Enterprise Law" and the "Chinese-
Foreign Cooperation Enterprise Law” (the three laws
are commonly referred to as the "three foreign laws")
5 AmCham South China
CChhiinnaa ttoo RReevviissee
FFoorreeiiggnn IInnvveessttmmeenntt LLaaww
TThhee NNeeww LLaaww PPrroommootteess NNaattiioonnaall TTrreeaattmmeenntt,,
EEnnddss MMaannddaattoorryy TTeecchhnnoollooggyy TTrraannssffeerr aanndd
OOppeennss GGoovveerrnnmmeenntt PPrrooccuurreemmeenntt ttoo FFIIEEss
On December 23, the draft “Foreign Investment
Law” was formally submitted to the Seventh
Session of the Standing Committee of the National
People's Congress for consideration. It is expected
to replace the "three foreign laws" formulated in
the early years to become the basic law in the
field of foreign investment, and further expand
the external situation for the new situation.
Open, active and effective use of foreign capital
provides a more powerful rule of law guarantee.
Statistics show that as of the end of November
2018, China had established a total of 950,000
foreign-invested enterprises based on the "three
foreign laws", and the actual use of foreign
capital had exceeded 2 trillion US dollars. Foreign
investment has been a major factor in China's rapid
economic and social development.
The draft specifically addresses the
protection the intellectual property rights
of foreign investors and foreign-invested
enterprises. It encourages technical
cooperation based on voluntary principles
and business rules. The draft stipulates that the
conditions for technical cooperation in the process
of foreign investment shall be determined through
negotiation between the parties to the investment,
and the government administrative organs and their
staff shall not use administrative means to force the
transfer of technology.
In the early days of reform and opening up, China
formulated the "Sino-foreign Joint Venture Enterprise
Law", the "Foreign Enterprise Law" and the "Chinese-
Foreign Cooperation Enterprise Law” (the three laws
are commonly referred to as the "three foreign laws")
5 AmCham South China
