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Chinese Parliament approves new bill on foreign investment

A bill to ensure fair treatment for China's foreign investors, perceived as a reaction to US trade pressure, was passed by parliament Friday in Beijing.

The text was approved by the National People's Congress (ANP, Communist regime's registration office) in favor of 2,929 votes, 8 votes against and 8 votes.

This text, censored to address the long-standing grievances of foreign companies in China, including forced technology transfer, has been criticized by European and American chambers of commerce, and they had little time to propose.

According to the latest edition, which has been reported by the media but not officially confirmed, the text says that domestic and foreign investors provide "the same treatment" in the Chinese market characterized by "fair competition". A long-standing demand that many foreign companies demanded unfair treatment.

The bill was put into action at the end of 2018 in response to US demands.

Washington is demanding structural reforms in China as part of its trade war with China. US President Donald Trump has accused China of "stealing technology" several times from US companies.

The text "prohibits the use of administrative means by which foreign companies can pass technology on to their Chinese partners."

"The conditions for technical cooperation should be negotiated in a fair and equitable way," he said, expecting concrete action to counter Washington's intellectual property infringement.

Chinese court as mediator

Chinese courts must enact laws to help foreign investors be willing to support local businesses.

"Kyle Freeman, an attorney at Dezan & Associates, an investment legal advisor, said," There is a fear that the application of the law does not hinder full access to the market. AFP.

In the midst of a commercial war between Washington and China, China submitted its draft bill in December, and a few weeks later, the US tariff rate is 10-25%. Donald Trump has delayed negotiations with Beijing.

China 's European Chamber of Commerce criticized the hasty letter for a trade deal with the United States.

With China 's economic activity shrinking sharply, Beijing wants to make the law a forum for attracting more foreign capital.

Since the beginning of the year, the country has had worrisome results, including a 20 percent drop in exports in February.

Prime Minister Li Keqiang lowered China 's growth prospects last week. It is the lowest level in 28 years with 6 to 6.5 percent compared to 6.6 percent in 2018.

The new bill must come into effect on January 1. This was the most anticipated ANP annual meeting that ended Friday.

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