Page 11 - The South China Business Journal
P. 11
Zhanshu, chairman of the National
People's Congress (NPC) Standing
Committee, presides over the closing
meeting of the eighth session of the
13th NPC Standing Committee in
Beijing, capital of China, Jan. 30, 2019.
(Xinhua/Shen Hong)
Chinese and global economy. The extended time help inject more foreign capital into the Chinese
will allow the government to roll out the new economy, and better protect the intellectual
system in an organized manner. property rights of foreign enterprises.
The draft foreign investment law was submitted The new Foreign Investment Law will replace
to the second session of the 13th National People's the three existing laws on Chinese-foreign equity
Congress for review before being passed on March joint ventures, wholly foreign-owned enterprises
15. According the ChinaDaily.com, the new law and Chinese-foreign contractual joint ventures.
demonstrates China’s commitment to take the These laws were antiquated as many of the
country’s opening-up to a new level. provisions were 40 years old and did not reflect
the changing times.
Foreign investors and enterprises have made
important contributions to China's economic and The Foreign Investment Law will remove many
social development for the past 40 years. The actual barriers for foreign investment and China officials
use of foreign capital in 2018 hit a record high with hope it will enhance the country’s image of being
60,533 new foreign-invested enterprises registered. an open and fair market. The new law is an attempt
This is an increase of 69.8 percent year-on-year. In to alleviate international pressure on China, and
addition to investment, foreign businesses also play pave the way for it to play a more active role in the
an important role in stabilizing the job market by reform of the World Trade Organization.
generating employment. Data from the Ministry of
Commerce show that foreign-invested enterprises Of course, the hope is that the new law will also
directly employed 45 million people in 2017. provide better protection to foreign investors,
invite more investments, and lead to more
Additionally, foreign-funded enterprises account mergers and acquisitions.
for nearly half of China's foreign trade, a quarter of
its industrial output, one-fifth of its fiscal revenue, There, however, remains much room for
and one-seventh of its urban employment. improvement in the new law. Mats Harborn,
President of the European Union Chamber of
The new Foreign Investment Law will solve some Commerce in China, said more than anything
of the problems faced by the foreign investors and else, foreign companies want equal treatment and
enterprises. The law guarantees "equal position opportunities. “While not all of our concerns were
for domestic and foreign investment", reflecting addressed in this law, it is time to move forward,”
China's commitment to "open its gate wider and Harborn added.■
wider" to foreign enterprises. The law will also
South China Business Journal 8
People's Congress (NPC) Standing
Committee, presides over the closing
meeting of the eighth session of the
13th NPC Standing Committee in
Beijing, capital of China, Jan. 30, 2019.
(Xinhua/Shen Hong)
Chinese and global economy. The extended time help inject more foreign capital into the Chinese
will allow the government to roll out the new economy, and better protect the intellectual
system in an organized manner. property rights of foreign enterprises.
The draft foreign investment law was submitted The new Foreign Investment Law will replace
to the second session of the 13th National People's the three existing laws on Chinese-foreign equity
Congress for review before being passed on March joint ventures, wholly foreign-owned enterprises
15. According the ChinaDaily.com, the new law and Chinese-foreign contractual joint ventures.
demonstrates China’s commitment to take the These laws were antiquated as many of the
country’s opening-up to a new level. provisions were 40 years old and did not reflect
the changing times.
Foreign investors and enterprises have made
important contributions to China's economic and The Foreign Investment Law will remove many
social development for the past 40 years. The actual barriers for foreign investment and China officials
use of foreign capital in 2018 hit a record high with hope it will enhance the country’s image of being
60,533 new foreign-invested enterprises registered. an open and fair market. The new law is an attempt
This is an increase of 69.8 percent year-on-year. In to alleviate international pressure on China, and
addition to investment, foreign businesses also play pave the way for it to play a more active role in the
an important role in stabilizing the job market by reform of the World Trade Organization.
generating employment. Data from the Ministry of
Commerce show that foreign-invested enterprises Of course, the hope is that the new law will also
directly employed 45 million people in 2017. provide better protection to foreign investors,
invite more investments, and lead to more
Additionally, foreign-funded enterprises account mergers and acquisitions.
for nearly half of China's foreign trade, a quarter of
its industrial output, one-fifth of its fiscal revenue, There, however, remains much room for
and one-seventh of its urban employment. improvement in the new law. Mats Harborn,
President of the European Union Chamber of
The new Foreign Investment Law will solve some Commerce in China, said more than anything
of the problems faced by the foreign investors and else, foreign companies want equal treatment and
enterprises. The law guarantees "equal position opportunities. “While not all of our concerns were
for domestic and foreign investment", reflecting addressed in this law, it is time to move forward,”
China's commitment to "open its gate wider and Harborn added.■
wider" to foreign enterprises. The law will also
South China Business Journal 8
