Photo: Xinhua

China is set to ring in the new year with a new foreign investment law and rules for its implementation, both coming into force on Wednesday, as the nation delivers on its promise to open its market even wider to foreign investors.

A State Council decree issued Tuesday announced that rules for implementing the new foreign investment law were passed at a State Council executive meeting on December 12 and will be effective on New Year's Day.

The draft rules on the new law's implementation were released by the Ministry of Justice on November 1, more than seven months after the new foreign investment law was passed by the National People's Congress, China's top legislature.

The draft rules were open for public comment through December 1.

The drafting authorities had sought written comments from more than 200 agencies ranging from the concerned central government departments, local governments, foreign companies, relevant associations, foreign chambers of commerce, law firms and research institutions. 

Symposiums were also held to specifically pick the brains of some 20 foreign companies and other individuals including lawyers, experts and scholars, read a statement posted on the website of the Ministry of Justice on Tuesday that outlines the input regarding the implementation rules from unidentified officials from the Ministry of Justice, the Ministry of Commerce, and the National Development and Reform Commission. 

The rules of implementation detail efforts to boost foreign investment, according to which all sorts of policies designed to support business development will be, fairly and according to rule of the law, applied to foreign companies. Policies overseeing foreign investment will be made more transparent, foreign companies will be ensured to equitably engage in formulation and revision of various standards, the implementation rules stipulate. Governments and relevant departments cannot obstruct and restrain foreign companies from freely entering local markets for government procurement, the rules provide.

The statement also made a special mention of investment hailing from Hong Kong, Macao and Taiwan, which it said is by nature different from investment made by foreign companies but also distinct from mainland investment. Investment in the mainland by companies from the special administrative regions of Hong Kong and Macao, now falling under the purview of the foreign investment laws and regulations, will be overseen in accord with the new foreign investment law and implementation rules. Investment made by companies from the island of Taiwan, for their part, will continue to be subject to the law on protection of investments made by compatriots from Taiwan and the detailed rules for implementing the law. If not stipulated in the investment protection law, investment by Taiwan-based companies in the mainland will be overseen using the same process as their Hong Kong and Macao counterparts. 

Global Times