Merck believes globalization and free trade are the essence and the fuel of a company that is truly global. [Photo provided to chinadaily.com.cn]

The newly-approved Foreign Investment Law, the promotion of free trade, further reform and opening up in China have benefited not only foreign investors, but provided a better business environment for all players in this country, said top executives of German pharmaceutical giant Merck during a media interview at the just-ended Boao Forum for Asia in Boao, South China's Hainan province.

As a pharmaceutical, chemical and life sciences conglomerate, it is always important for Merck Group to have clear and transparent pharmaceutical structures, and the Foreign Investment Law gives the company more transparency and a much more reliable framework, especially on intellectual property rights, said Merck executive board member Kai Beckmann.

"There is a clear focus on the right rules that we have to have, and we appreciate the progress with the law," he said, adding that it is what international companies really appreciate, since it gives them structure and predictability in the operating environment in China.

"The Foreign Investment Law sounds like it's just for foreigners, but frankly it's for everybody," said Allan Gabor, president of Merck China, adding that the law lifts the whole operating environment by giving Merck a lot of encouragement, because many of the investments the company makes today are things that will come five and 10 years into the future.