China’s new law aimed at equal market treatment draws scepticism from observers
- Observers are sceptical whether a new law aimed at levelling the playing field for foreign firms operating in China will be successfully implemented
- The law is China’s latest effort to demonstrate its commitment to opening up market access amid a trade war with the United States
A new law aimed at addressing concerns that China treats foreign firms unfairly will be hard to put in practice because of the country’s centralised political system and opaque judiciary, analysts and businessmen said.
Beijing on Wednesday passed legislation aimed at levelling the playing field for overseas companies operating in China by promising to promote a market-driven system that provided a “stable, fair, transparent and predictable environment” for business.
The law includes 72 parts, ranging from equal protection of rights and market access to punishments for intellectual property violations. But some observers have already raised questions about its implementation.
If private businesses want to flourish, they will always have to depend on political will
“Because there is a strong government and a centralised system in China, [the government] controls key resources for production and allocation,” said professor Li Jianwei from the Civil, Commercial and Economic Law School at the China University of Political Science and Law.