China set to vote on new law aimed at levelling playing field for foreign investors
- Members of the foreign business community say the legislation is being pushed through in response to the trade war with the United States
- Chinese analysts say it reflects China’s desire to improve its economy and legal system
China’s top legislators will vote next week a new law that its backers say will level the playing field for foreign investors, as Beijing tries to fend off complaints from Washington and Brussels about unfair trade practices.
The latest draft of the foreign investment law was presented to the National People’s Congress for discussion in the Chinese capital on Friday and its progress will be closely watched by investors at home and abroad.
Wang Chen, vice-chairman of the NPC’s Standing Committee, said the legislation would “promote foreign investment, protect the lawful rights and interests of foreign investors in the new era”, and “foster a market environment in which domestic and foreign capital compete on a level playing field”.
“With this new law and specific supporting regulations and rules, we will improve the legal system to promote, protect and regulate foreign investment activity and make our foreign investment work more law-based,” Wang said.
China’s biggest trading partners, the United States and the European Union, have repeatedly complained about poor market access, unfair competition, forced technology transfer and weak intellectual property protection in the world’s second-biggest economy.