Legislative Commission: The rule of law guarantees sound business environment
"Corresponding laws and regulations will be drafted after the Foreign Investment Law (FIL), so as to establish an open, transparent and predictable business environment under the rule of law," Liu Junchen, vice chairman of Legislative Affairs Commission of the National People's Congress (NPC), says at a press conference Saturday.
"The rule of law guarantees the best business environment," Liu says.
The new FIL will play a leading role as an overarching law in the field of foreign investment, Wang Chen, vice chairman of the NPC Standing Committee said Friday.
Liu says the new law will establish a basic institutional framework and fundamental rules in the field, putting up pillars that will support China's foreign investment legal system in the new era. He adds that after the law is passed, corresponding regulations will be drafted so as to establish an open, transparent and predictable business environment under the rule of law.
Liu says the highlight of FIL is on the issue of national treatment. The national treatment is generally applied after admission. The current draft FIL proposes pre-entry national treatment to foreign investment outside the negative list, which means the treatment of foreign investors and their investment will be no less than domestic investors.
"This is to move up the implementation of national treatment from the post-admission to the admission stage, which facilitates high-standard investment liberalization ", Liu says.
Liu says that the new FIL answers to current problems, as it adds specific terms such as stressing on open and transparent foreign investment policy; maintaining a fair competitive market; and local governments fulfilling their policy promises with foreign-funded companies.
Legislative Affairs Commission of the NPC Standing Committee held the press conference during the Second Session of the 13th NPC.