More statutory interpretation expected on China’s foreign investment law

Photo courtesy to Xinhua

China’s newly-approved foreign investment law, which will come into effect on January 1, 2020, carries much optimism from foreign investors as it signals more opening-up, while expectations run high for efficient law enforcement in future practices.

The foreign investment law will further enlarge opening-up and boost global investors’ confidence, and seek out pragmatic solutions as the downside risks are challenging international development and cooperation, experts and investors agreed at a forum held by Center for China and Globalization on Sunday in Beijing.

China has shown determination and sincerity to safeguard a secure environment in business community in accordance with the principle of fairness according to the foreign investment law, which was passed on March 15 by National People’s Congress (NPC), China’s top legislature.

China has a very stable market, which is able to nurture various business models. The Foreign Investment Law makes monumental progress in some investment markets at the basic level, praised Yang Xiaoping, President of BP China.

China’s infrastructure edge and stable market can further open the environment for foreign tech companies and investors, said Allan Gabor, President of Merck China.

The Foreign Investment Law clarifies the responsibility and obligation for foreign players, including business management, enterprise management, and penalties, added Zhou Yanli, former vice Chair of the China Insurance Regulatory Commission.