As China's economy is slowing down, President Xi Jinping stated that there are three tough battles facing China, namely, preventing and defusing risks, targeted poverty alleviation and pollution control. 

It is important to note that the first battle, preventing and defusing financial risks, is considered relevant to national security, overall development, and the security of people's property, and therefore it is a threshold that the country must cross to achieve high-quality growth — and now has been put on the front burner by the Chinese government. But, what policies will help China to deal with these risks? 

According to Wang Ruihe, Director of the Economic Law Office of the Legislative Affairs Commission under the NPC Standing Committee, the lead drafter of the new Foreign Investment Law, the law is an upgraded version of China's laws governing foreign investment, manifesting China's determination to further opening-up.

First and foremost, the Law is an accelerator for the development of foreign businesses in China. From the outset of reform and opening-up, China set up a strict management system to govern foreign investment. As for the specific processes the applicant had to go through, there were a large number of departments involved and many stamps required. Thus, the new Foreign Investment Law is a turning point. It is quite different in terms of legal philosophy and thinking. The new Law promises a so-called unified legal solution.

A highlight is a new management model. In the past, a foreign investor setting up a business in China had to get approval from the foreign investment management authorities, regardless of industry. An examination and approval process was required for every market entity. Now, to enter sectors that are not on the negative list, no such approval process is required, which is the same as for domestic companies. All they need to do is register as an investment entity and report on relevant investments. For China, this management model is a significant change.

Second, the Law is a protector of foreign businesses in China. Based on this Law, many targeted regulations have been made, especially strengthening intellectual property protection. On the books, China has always valued the protection of intellectual property rights, and has had special laws in place, such as Patent Law, Trademark Law, Copyright Law,Criminal Law, General Provisions of Civil Law, E-commerce Law, Anti-Unfair Competition Law, etc.

Now, combined with supporting regulations of the State Council and other departments, this new Foreign Investment Law constitutes a relatively comprehensive legal system for intellectual property protection and real enforcement mechanisms. Moreover, the Foreign Investment Law includes other regulations,such as the ban on forced technology transfer in joint ventures.

Therefore, Wang Ruihe concludes, this new Foreign Investment Law benefits foreign investment and thereby continues China's further opening up.