China approves foreign investment law, possible U.S. olive branch

Share

So to make things clear, Chinese Premier Li Keqiang revealed China's Cabinet would release more details and regulations about how they meant to implement the new foreign investment law. This is not how China behaves.

The National People's Congress kicked off on March 5, as many analysts say Chinese President Xi Jinping has faced one of the most challenging years since he came to power in 2013, with a trade dispute with the United States hurting the country's economy.

The Chinese government will also strengthen the protection of intellectual property rights, particularly for technology firms that will invest in China.

In a statement earlier this week, the American Chamber of Commerce in China welcomed the "legislative effort to improve the foreign investment climate".

Washington and Beijing have been locked in a tit-for-tat tariff battle as U.S. presses China for an end to practices and policies it argues have given Chinese firms unfair advantages, including subsidising of industry, limits on access for foreign companies and alleged theft of intellectual property.

China's top trade negotiator, Liu He, held phone talks with US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer, with the official Xinhua news agency saying they made "substantial progress".

China's parliament, the National People's Congress (NPC), concluded its 10-day annual session on Friday by adopting the law. But the new law "doesn't tackle" that problem, she added.

More news: New Zealand mosque shootings: FB, Twitter face scrutiny after livestreaming of attack
More news: Police in Brick arrest accused killer of reputed mob boss
More news: BBC Sport pundit states his prediction for Wolves v Man United

The law will replace existing regulations for joint ventures and wholly foreign-owned enterprises and is created to ease foreign concerns about China's investment environment, especially as China and the United States work to try to end a trade war.

They endorsed a foreign investment law in the Chinese parliament aimed at appeasing the concerns of trading partners in Washington and elsewhere.

More than opening up the market to foreign players, he added that the Chinese government is committed to protect the growing interest of foreign companies in investing in China. "We will closely monitor the FIL's implementation to ensure that it is fully respected at all levels of government and in all corners of this country", said Mats Harborn, president of the EU Chamber of Commerce in China.

China is targeting a GDP growth range of 6 to 6.5 per cent this year, down from 6.6 per cent in 2018 - the slowest pace in 28 years.

Chinese officials deny companies are required to hand over technology. Despite substantial improvements, the Chinese leadership can be hard, but also foreign companies access to the market. Apple (AAPL) and NVIDIA (NVDA) have warned that China's slowdown is hurting their earnings, and Advanced Micro Devices (AMD), Micron (MU), Amazon (AMZN), Netflix (NFLX), and Alphabet (GOOG) have also been impacted by the world's two largest economies' trade issues.

China has so far promised billions of dollars in planned tax cuts and infrastructure spending, as economic momentum is expected to cool further due to softer domestic demand and a trade war with the United States.

"In actual practice, our goal is to generate the same amount of job opportunities as we did previous year, which is over 13 million", Premier Li Keqiang told a press conference after the conclusion of the annual session of China's national legislature Friday.

Share