The Abacus

ACBC welcomes China's Draft Foreign Investment Law

By: ACBC National
12-03-2019

On 8 March the National People’s Congress held the third and final reading of China’s new draft Foreign Investment Law and a final vote on the draft law is scheduled for 15 March.

ACBC welcomes China’s draft foreign investment law which addresses concerns raised previously by foreign investors, and also shows the Chinese Government’s willingness to open its markets to foreign businesses.

Some of the key features of the draft law include:

  • Chinese authorities are prevented from forcing foreign entities to transfer their technology;
  • Foreign businesses are afforded the same treatment and market access as Chinese counterparts except for sectors included in the negative list -akin to Australia’s Critical Infrastructure;
  • The establishment of a foreign investment information reporting system -akin to Australia’s Foreign Investment Review Board

A final vote on the draft law is scheduled for 15 March.

@AusChinaBC

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