A draft law on foreign investment goes up for review. The bimonthly session of the National People's Congress (NPC) Standing Committee, which opened Sunday, aims to simplify several processes for foreign investors. CGTN's Hou Na shows us what it will mean.

China's first unified law aimed at regulating foreign investment. With current laws unable to keep up with the changing economic situation, China strives to build new institutions and further open its economy.

ZHENG GONGCHENG, MEMBER NPC STANDING COMMITTEE "It is a clear message that by drafting the law, our country is raising the level of opening up to a new dimension."

The new draft underlines protection of intellectual property rights of foreign investors and foreign companies. It also encourages voluntary technological cooperation based on 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.

HOU NA GREAT HALL OF THE PEOPLE, BEIJING "Lawmakers say that foreign investment law is meant to promote and protect foreign investment which will boost their confidence in the Chinese market. But other measures need to be put in place to ensure fair play."

Zheng Gong Cheng of the NPC Standing Committee suggests the draft should make clear the legal responsibilities of foreign companies in several categories.

ZHENG GONGCHENG, MEMBER NPC STANDING COMMITTEE "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."

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, MEMBER NPC STANDING COMMITTEE "I hope the Top Legislature can hear more voices from us Hong Kong business people when drafting the law."

Once adopted, the unified law will replace three existing laws. Law makers will not pass the draft this time. It now needs review at least three times by the Top Legislature before it's passed. So discussions will continue, and more details will be debated by the law makers.

HOU NA, CGTN, BEIJING.