Facing strong headwinds on two fronts – the rise of protectionism globally and downside risks in domestic market, China has initiated decisive moves to smooth the way for long-term growth, as suggested in the government work report delivered by Chinese Premier Li Keqiang on March 5 at the opening of the annual meeting of China's top legislature, the National People's Congress (NPC). 

A foreign investment law is expected to be approved at the end of the ongoing Two Sessions. International coverage tends to associate the law with the tariff war launched by the United States against China, in particular, the stipulation that forbids local governments from engaging in "forced technology transfer" from foreign investors.

That might be true to a certain extent, despite the controversy over whether there's "forced" transfer of technology as an investment project would be based on a contract signed voluntarily by the investors. Also, the law, which is to replace the three existing laws regulating foreign investment, was proposed back in 2015.

But there's much more beyond technology transfer. It actually represents a new stage in China's efforts to open up to the world.

For example, the new law contains a negative list – areas related to national security and other restricted fields for investment. But outside the list, it's free to invest. Such a list provides transparency and certainty. Premier Li Keqiang said in the Government Work Report that the negative list is to be further shortened, ensuring freer investment in China.

As for investment under the new law, foreign investors will enjoy the same privileges as their Chinese counterparts, or known as a national treatment in order to foster fair competition in the Chinese market.

On IPR protection, another concern popular among foreign investors, Premier Li noted China will ask lawbreakers to pay the price "too dear to afford." China is leading to a growing number of sectors in science and technology, such as 5G, AI, big data, Internet of Things, etc. The consensus is that to strengthen IPR protection is increasingly in Chinese interests. For example, a counterfeit version of the Chinese blockbuster "The Wandering Earth" was available online only about a week after the release of the movie. Behaviors such as this need to be taken seriously.

In addition to efforts to draw more overseas investment, China is creating optimal conditions for domestic economic expansion. According to Li, China will "implement larger-scale tax cuts" to reduce tax burdens in manufacturing and on small and micro businesses. The current rate value-added tax rate of 16 percent in manufacturing and other industries will be reduced to 13 percent, and the rate in transportation, construction, and other industries will be lowered from 10 percent to nine percent.

The promise is, "in all industries, tax burdens only go down, not up." 

The contribution by enterprises to social insurance schemes, a usual complaint from the Chinese business community, is also to be significantly reduced.

Altogether, China will reduce the tax burdens on and social insurance contributions of enterprises by nearly two trillion yuan, or some 298.31 billion U.S. dollars, in 2019.

All these internal and external reforming measures are expected to not only encourage more investment and short-term growth but also lay the groundwork for a stable expansion in the years to come.

China sets a growth target between six to 6.5 percent for 2019. For an economy with a size of 9 trillion yuan, such a range can hardly be said as "slow."