China has offered more details about its new Foreign Investment Law due to take effect next year, but researchers and foreign investors want more.

According to a draft of the law’s implementation guidelines published Friday by the Ministry of Justice, government authorities will be banned from forcing foreign investors to transfer technology when registering businesses, giving permission for investment projects, undertaking inspections and meting out punishments. The draft is currently open to public consultation.

Cui Fan, a professor at the Beijing-based University of International Business and Economics, told Caixin that the draft suggests that forced technology transfers will be banned not only when foreign investors apply for access to the Chinese market, but also when regulators and businesses engage on other matters, such as day-to-day supervision and post-mortem punishments.

Other researchers say the draft does not reveal enough details about how the law will be implemented. For example, the document does not contain any reference to a controversial and unspecified “safety review system” — which is mentioned in the law — that would potentially grant the government sweeping powers to review foreign businesses’ technology in the name of national security.

Read the full story on Caixin Global soon.

Contact reporter Guo Yingzhe (yingzheguo@caixin.com)

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