New Foreign Investment Law: Foreign business communities welcome the initiative

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New laws in 2019 may impact your favorite imported and domestic products. The measures are aimed at leveling the playing field between Chinese companies and foreign ones, as the government looks to boost foreign trade. CGTN's Cui Huiao looked at how these changes might affect us in the short and long term.

John Rwehumbiza is a Tanzanian businessman working in Guangzhou. Since 2015, his company has been exporting a Tanzanian agro product called cassava to China. Rwehunbiza also served as chairman of Tanzania's Chamber of Commerce in China. He says many Tanzanian investors are looking forward to China's new proposed law on foreign investment.

JOHN RWEHUMBIZA TANZANIA BUSINESSMAN "We used to be buying a lot from China. There was a kind of trade imbalance, but now we are also going to sell to the big market of China. In that way we are going to balance the trade, and our people are going to benefit."

Rwehunbiza says the proposed law will make market access easier for Tanzanian companies, opening doors to the country's soy beans and cashews. American companies also see it as a great move.

Harley Seyedin, the president of the American Chamber of Commerce in South China, says the new legislation signals a change in focus from management to protection of foreign investment, especially with both protection of technology and intellectual property rights being written into the draft law.

HARLEY SEYEDIN PRESIDENT, AMERICAN CHAMBER OF COMMERCE IN SOUTH CHINA "It will encourage them to bring additional technology to China which at this point they have been hesitant to do. They will increase their investment. It will help China open up more."

Seyedin says the legislation is a good initiative as it will establish equal footing for foreign businesses and create a level playing field where everyone can participate, but only under the condition that the law is enforced.

HARLEY SEYEDIN PRESIDENT, AMERICAN CHAMBER OF COMMERCE IN SOUTH CHINA "One of the things we've suggested is setting up a vehicle where foreign companies' issues and complaints can be channeled above the level of the local governments to a level that cannot be influenced by the local governments."

At the end of this November, a total of 950 thousand foreign-funded companies became registered in China. They altogether brought in more than 2 trillion U.S. dollars, performing as a major driving force in China's rapid development. And to continue this momentum, protection of foreign companies becomes more crucial than ever.

Cui Hui'ao, CGTN, Guangzhou.