Foreign Investment Law: Global companies give cautious welcome to new law

World
Europe

02:39

China's legislators have passed a new Foreign Investment law. It aims to give foreign investment a level playing field with domestic companies and addresses concerns from the US and others over Intellectual property, Technology transfer and joint ventures. CGTN's Nathan King asked global business executives what they make of the new law.

Perhaps no one personifies China's opening up more than Kevin Zhang, the co-founder and CEO of the Argyle group, An Australian hotel group with over a hundred hotels across China; Kevin bet big on China's underdeveloped provinces and towns, often being the first to open up an international hotel. He sees the new foreign investment law as the necessary next step for China's reform and opening up.

KEVIN ZHANG CEO, ARGYLE GROUP "This is great news for us. First of all I think this shows the Chinese government's determination to open the door even wider to the outside world in this anti-globalization environment, so that is good news."

And as an Australian citizen who advises Canberra on exports to china, Kevin Zhang says it shows China is becoming more receptive.

KEVIN ZHANG CEO, ARGYLE GROUP "China is listening to the world. China is confident to face some of the concerns from other countries."

Those concerns come from people like Mats Harbon, the President of the European Chamber of Commerce in China, he still has big questions.

MATS HARBORN PRESIDENT, EUROPEAN CHAMBER OF COMMERCE IN CHINA "We were not happy about the law in the first place because we don't see a need to distinguish between foreign and investor companies and domestic companies so we thought it should have been called something else."

The Europeans and the US still want more access to parts of China's economy essentially closed off to foreign completion especially in cloud computing and the financial sector. But the Europeans are cautiously welcoming this law and say now the focus will be on how it is enforced.

MATS HARBORN PRESIDENT, EUROPEAN CHAMBER OF COMMERCE IN CHINA "Now we are coming to a point where will make sure that this law is enforced at all levels in the administration and all corners of China."

NATHAN KING BEIJING "While this new law should improve investment opportunities for foreign companies in China for months and years to come, its most immediate effect may be increasing the likelihood of a trade deal between China and the United States".

Nathan King, CGTN, Beijing.