Deputy chairlady of Deloitte China: Tone of China's draft foreign investment law is firm
World Insight with Tian Wei
China's National People's Congress (NPC) is expected to vote on a draft foreign investment law on Friday. If approved, it would ban forced technology transfer and further extend intellectual property protections to foreign investors and foreign-invested enterprises.
The law would affect the 950,000 enterprises that have been set up in China in the last four decades. Their investments have totaled more than two trillion U.S. dollars.
However, the challenge now is how to put together the current three versions of the legislation into one law. How does the updated foreign investment law reflect China's commitment to opening-up and help raise the standard of governance? CGTN senior correspondent Tian Wei talks to Vivian Jiang, deputy chairlady of Deloitte China.
Jiang thinks the tone of China's draft foreign investment law is very firm, stressing that "you can reach from many aspects. For example, there is a lot of debate about whether foreign companies can take profits out of China. There is no law that actually prohibits that behavior as long as you complain. But in practice, there are banks, and forex rules, sometimes would add on some requirements, so that adds on the practical difficulty for you to get out. Now the language itself says you can freely do it. The word is very clear."
So far there are three different sets of foreign investment law since 1979, now people are trying to put them together into one basic law. The transition of the three iterations becomes a big challenge. Jiang believes the government needs to provide clear guidance about the transition of legislation.
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