Photo via Huanqiu.com

Global enterprises think highly of China’s foreign investment law, which will take effect on January 1, 2020, saying it will inject confidence and vitality into the Chinese market.

China’s national legislature on March 15 passed the foreign investment law, a landmark legislation that will provide stronger protection and a better business environment for overseas investors. Once the new law goes into effect, it will affect around 960,000 foreign corporations.

“The Foreign Investment Law provides a distinct, concentrated, and more powerful legal guarantee for foreign investors in China’s market,” said Zhao Weiliang, chairman of TOTAL (China) Investment, one of the first international energy giants to enter China.

“After the implementation of the Foreign Investment Law, China’s market will become more open to foreign investors, and some of the invisible obstacles faced by foreign capitals will gradually be wiped out,” Zhao noted.

Stephane Rinderknech, CEO of L’Oréal (China), said the company is highly confident in the Chinese market, which is becoming more stable, transparent, and predictable as well as fairer, adding that the company approves of and appreciates China’s active efforts in promoting opening-up.

“China has made remarkable progress in intellectual property protection. The cooperation and win-win model between Qualcomm and Chinese partners are sound proof,” Meng Pu, chairman of Qualcomm Technologies in China, pointed out, adding that enhanced IPR protection under the law will further add to the confidence.

“The law marks another signal of opening after China’s reform and opening-up policy. I believe that the Foreign Investment Law will attract more foreign businessmen to participate in China’s economic growth process,” said Neil Shen, the founder and managing partner of Sequoia Capital China.