Draft Foreign Investment Law Adds Complaint Mechanisms

China conducted a third and final reading Friday of a draft foreign investment law, including new language on complaint mechanisms, before a final March 15 vote on the landmark legislation.

Readings of first and second drafts took place in December and January for legislation that, if passed, would replace three current laws. The new law is intended to better protect foreign investor rights in China and ensure fair competition. It is also expected to ban local governments from forcing foreign companies to engage in technology transfers in return for domestic market access, which has long been a criticism by the administration of U.S. President Donald Trump.