Caixin Global – Latest China News & Headlines

Home >

Popular WeChat Account Valued at 2 Billion Yuan Snapped Up By Education Firm
Vietnam Welcomes Companies Moving Production from China
China’s Legislature Passes Landmark Foreign Investment Law
Tencent Quarterly Profit Sags, to Pay Dividend
Former Tencent AI Chief to Head New Sinovation-Backed Hong Kong Lab
U.S. Trade Delegation to Visit Beijing on March 28-29, China Says
The Fall of a Mysterious Private Villa in a Protected Wilderness Area in China
More Party Discipline Inspections Are Coming, With Focus on Central Government Institutions
China to Draft Value-Added Tax Law This Year
China Construction Bank Names New President
China High-Level Economic Forum to Focus on Opening Up
China Telecom to Invest 9 Billion Yuan in 5G This Year
People’s Daily Head Leaves for High-Level Position at Beijing’s Liaison Office in Hong Kong
Xiaomi Swings to Profit Amid Lackluster Smartphone-Industry
After Food Scandal, New Rule Requires School Officials to Dine With Students
Like the U.S., China Has Its Own College Admissions Problems
Swine Flu Prevention Moves to the Slaughterhouse
China’s Securities Watchdog Receives 22 Fund Applications Targeting High-Tech Board
Stock Nosedives for Shenzhen Software Company After Activist Dubs It Bubble
Teenage Son Kills Mother to End Her ‘Harsh’ Discipline
China’s New Nasdaq-Style High-Tech Board Starts Taking Applications for IPOs
Chinese Dairy Leader Purchases New Zealand’s Major Milk Supply Co-Operative
New Income Tax Law Takes Bite From Government Coffers

By Zhao Runhua / Mar 15, 2019 12:15 PM / Politics & Law

Photo: VCG

Photo: VCG

After decades of what some called an outdated framework, China today passed a sweeping new Foreign Investment Law.

China says the law will improve the openness, transparency and predictability of the investment environment, establish equal treatment for foreign and domestic investors, and bar forced technology transfers — a focal point of trade tensions with the U.S.

China’s top legislature, the National People’s Congress (NPC), passed the law with an overwhelming majority: 2,929 yes votes, eight no notes, and eight legislators abstaining.

The law will go into effect on Jan. 1, 2020. The final version is not available to the public, but it was reported that only one change was made to last week’s draft version: an item prohibiting staff working for administrative departments from leaking confidential information, and specifying punishment for such violations.

The NPC has gathered this week in Beijing as part of China’s highest-level annual political gathering, called the Two Sessions, in which legislators and delegates confer for two weeks to review China’s recent development and outline its future policy goals. After the meeting closes today, new amendments may be added to the foreign investment law, as long as they do not contradict “fundamental principles” of the law.

In addition to the law’s mandate of “equal treatment” of foreign and domestic companies, another notable element includes making nationwide the so-called negative list — which defines which industries or activities foreign businesses are able to operate in. Before the new law, the negative list had not been implemented uniformly across the country.

Related: In-Depth: New Foreign Investment Law Goes on Fast Track

Support independent journalism from China. Subscribe to Caixin Global starting at $0.99.

Share this article
Open WeChat and scan the QR code
Copyright © 2017 Caixin Global Limited. All Rights Reserved.