The bimonthly session of the National People's Congress (NPC) Standing Committee, which opened Sunday, aims to simplify several processes for foreign investors, with a draft law on foreign investment going up for review.
It is China's first unified law aimed at regulating foreign investment.
Lawmakers hold panel discussions on Wednesday. /CGTN Photo
With current laws unable to keep up with the changing economic situation, China strives to build new institutions and open its economy.
The new draft underlines protection of intellectual property rights of foreign investors and foreign companies. It also encourages voluntary technological cooperation complying with business rules.
It says conditions of technological cooperation concerning foreign investment should be decided by all parties of investment through negotiation, while government departments and officials cannot use administrative means for forced technology transfers.
Zheng Gongcheng speaks at panel discussion. /CGTN Photo
"It is a clear message that by drafting the law, our country is raising the level of opening up to a new dimension," said lawmaker Zheng Gongcheng.
He suggested that the draft should make clear the legal responsibilities of foreign companies in several categories.
"To ensure fair competition in the market, we need to have more specific measures to regulate foreign companies in areas like environment, labor and the utilization of land resources," he said.
China has adopted a foreign investment administration model of pre-establishment national treatment plus a negative list.
As part of its efforts to further open up, the country unveiled a shortened negative list for foreign investment in June, cutting the number of items from 63 to 48, and removing access restrictions in various sectors.
Tan Yaozong speaks at the panel discussion. /CGTN Photo
Lawmaker Tan Yaozong from Hong Kong hopes the top legislature will hear more of the demand of Hong Kong business people when drafting the law.
Once adopted, the unified law will replace three existing laws. Lawmakers will not pass the draft this time. It now needs to be reviewed at least three times by the top legislature before it's passed. Therefore, discussions will continue, and more details will be debated by the lawmakers.