China's Supreme People's Court (SPC) on Friday issued a judicial interpretation applicable to the Foreign Investment Law, aiming to optimize the business environment and better protect the legitimate rights and interests of foreign investors in the country.

The interpretation will take effect on January 1, 2020, the same day when the Foreign Investment Law comes into effect.

Courts around the country will not support contracted parties who claim that investment contracts formed in areas not on China's negative list of foreign investment are void because the contracts have not been approved or registered by administrative authorities, according to the interpretation.

Investment contracts formed in areas where foreign investment is restricted by the negative list can still take effect as long as the parties concerned take necessary corrective measures before courts make effective judgments, said Luo Dongchuan, vice president of the SPC.

Investment contracts that did not meet the requirements of the negative list when they were signed can still be deemed effective if the negative list loosens restrictions before court judgments take effect, said Luo.

"These designs are aimed at guaranteeing the legitimate rights and interests of investors to the largest extent under the prerequisite of safeguarding the stability of foreign capital management," he said.

The number of cases accepted involving foreign-related civil and commercial affairs totaled 18,266 in the first 11 months of 2019, while throughout 2018 the number was 14,695, showcasing the achievements of the country's opening-up efforts, according to Luo.

Between January and November, a total of 36,747 foreign-funded companies were newly established in China, data from the Chinese Ministry of Commerce showed.

Foreign direct investment (FDI) into the Chinese mainland during the period stood at 845.9 billion yuan (about 121 billion U.S. dollars), up six percent year on year.

(With input from Xinhua)