Foreign investment law to serve as basic law second sess

The adoption of the foreign investment law is an innovation in the legal system on foreign investment and is to replace the existing three law

s and serve as the basic law on foreign investment as China continues to open up in the new era, said Zh

ang Yesui, spokesman for the second session of the 13th NPC, on Monday during a press conference.

The draft foreign investment law clearly stipulates that foreign invest

ment in China will be subject to pre-established national treatment plus a negative list man

agement system and the case-by-case approval management mode will be abolished, he said.

According to the draft law, industries where foreign investment is prohibited or restricted are specified in the negative list. Industri

es that are not on the list will be fully open, with domestic and foreign firms enjoying the same treatment.

“This is fundamental change in China’s foreign investment mana

gement system, and help create a more open, transparent and predictable environment for inv

estors and provide stronger legal guarantee on China’s new opening-up,” Zhang said.

113xe.cn