China has been making consistent efforts to improve its business environment and embrace investors worldwide. The message has been voiced by Premier Li Keqiang on many occasions recently.
Meeting with overseas delegates attending the China development forum this year, Premier Li set the tone for those who are eyeing the Chinese market, “The government will continue to inspire market vitality with reform and opening-up, to withstand pressure and maintain reasonable and constant growth.”
Years in the making, China’s Foreign Investment Law will come into effect on January 1, 2020. It aims to give foreign businesses broader market access, protect their intellectual property, prohibit intellectual technology transfer and guarantee a level playing field. Yet there is concern among foreign media and business leaders about how the law will be implemented and enforced.
Experts believe the move will enhance market access and add further protections for Foreign Direct Investment, which is expected to rise significantly in 2019 beyond last year’s 135 billion U.S. dollars.
On Tuesday, Premier Li chaired the State Council’s executive meeting. He called for efforts to be doubled in improving the business environment, including cutting down on lengthy procedural requirements, shortening the negative list on market entry, and decoupling business licenses from operating permits.
Li has also asked for an overhaul to policies and measures that fail to treat domestic and foreign investors as equals.
The meeting attendees also recommended comprehensive protection of intellectual property rights.