At present, the Standing Committee of the National People's Congress is actively revising the“Foreign Investment Law(Draft)” and collecting relevant suggestions for the whole people. With the investment promotion, investment protection and investment management as the main content, we will strengthen the promotion and protection of foreign investment.

The “Foreign Investment(draft)” will focus on four aspects of foreign investment.

Guarantee equal treatment of Domestic and Foreign-funded Enterprises

The issue of equal treatment has always been a long-term appeal of Foreign-funded Enterprises. Ensuring equal treatment of domestic and foreign-funded enterprises is reflected in the draft provisions.

Article 9 of the draft stipulates that, except as otherwise stipulated by laws and administrative regulations, the policies of the state to support domestic enterprises development are equally applicable to foreign-funded enterprises.

According to the draft, foreign-funded enterprises participate in the standardization work equally, and the formulation of standards should strengthen information disclosure and social supervision. In addition, the State guarantees that foreign-funded enterprises participate in government procurement activities fairly. Government procurement is treated equally according to the products produced by foreign-funded enterprises in China.

Incorporate policy measures to actively attract foreign investment into the law 

Since the reform and opening up, China has attracted foreign investment based on its national conditions and has become the second largest investor in the world.

The Draft stipulates that the State establishes a sound foreign investment service system and provides consultation and services for foreign investors and foreign-funded enterprises in terms of laws and regulations, policy measures, and investment project information.

The Draft stipulates that the people's governments at all levels and their relevant departments shall further improve the level of foreign investment services in accordance with the principles of convenience, efficiency and transparency. The relevant competent authorities shall prepare and publish foreign investment guidelines to provide services and facilities for foreign investors and foreign-funded enterprises.

Further simplifying foreign investment management

According to the Draft, the approval and filing of foreign investment projects shall be implemented in accordance with relevant state regulations. Where the foreign investor invests in an industry or field that requires permission in accordance with the law, it shall go through relevant licensing procedures in accordance with the law. Except as otherwise provided by laws and administrative regulations, the relevant competent department shall review the application for permission of foreign investors in accordance with the conditions and procedures consistent with domestic investment.

Strengthening the connection with International Investment Rules

A major feature of the Draft is the emphasis on the protection of the legitimate rights of foreign investment, including expropriation and compensation, intellectual property protection, and the free transfer of capital, profits, capital gains, etc. These are important elements of international investment agreements.

The Draft makes clear provisions on strengthening the protection of foreign intellectual property rights, and the improvement of foreign-funded enterprises' complaints and rights protection mechanisms.