China vows ‘fundamental change’ for foreign investors

BEIJING: China’s legislature will vote next week on a highlyanticipated bill that will bring “a fundamental change” for foreign investors, an official said Monday, in a move that could help ease US trade tensions.

The draft foreign investment law will be the most closely watched item at the annual twoweek session of the rubber-stamp National People’s Congress, which opens on Tuesday.

The legislation seeks to address longstanding complaints from foreign companies, though Europeans voiced concerns that it was being fast-tracked to meet US demands on trade.

The bill will eliminate the requirement for foreign firms to transfer proprietary technology to Chinese joint-venture partners – a central issue in China’s trade negotiations with the United States.

It also promises to abolish the “case-by- case approvals” process for foreign investments, NPC spokesman Zhang Yesui ( photo right) said at a news conference.

The change will ensure that foreign investors will enjoy the same privileges as Chinese companies in most sectors, except those placed on a “negative list”.

Beijing uses negative lists to identify areas that are either offlimits to non- state businesses or that require them to go through an application and approval process.