Sat. Apr 20th, 2019

China will approve a new foreign investment law to open more its market

China will approve a new foreign investment law to open more its market


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Correspondent in BeijingUpdated:

The National People's Assembly, the organic Parliament of the authoritarian Chinese regime, plans to approve a new law on foreign investment this week. One of its key points will be the opening of more markets to companies from other countries without having a Chinese partner or transfer their technology, which will imply a greater protection of their intellectual property rights.

Attracted by their 1.4 billion potential consumers, many foreign companies were forced until now to associate with a Chinese company in the so-called "joint-ventures" to do business in this country. Alliances that on more than one occasion have ended as the rosary of the aurora, with lawsuits in the courts for the theft of technology and patents. "In more industries foreign investors will be allowed to set up companies in which they have total ownership, instead of forcing them to associate with local firms," ​​the vice president of the National Commission for Reform and Development advanced last week in the Assembly. , Ning Jizhe, as reported by the newspaper «South China Morning Post». Following this opening, it also promised more facilities for "key projects" of unique foreign ownership, such as a Tesla electric car factory in Shanghai or a chemical complex of BASF in Guangzhou (Guangdong).

Along with employment, growth, trade, domestic investment and market expectations, the entry of foreign capital is one of the six areas "stabilize" this year by the Chinese regime. Although foreign direct investment rose last year by 3 percent to rise to 135,000 million dollars (120,000 million euros), in the last decade has been eased by the restrictions of the Chinese market. "China will develop more opening measures in agriculture, mining, manufacturing and services, allowing foreign companies with sole ownership in more fields," Ning Jizhe repeated the same promise that the regime has been making since it entered the World Trade Organization in 2001

After offering its experience and services in areas such as health, environmental protection and poverty reduction, the European Chamber of Commerce urged China in a statement to "continue with the commitments facts to expand market access and provide equal treatment and an effective regulatory environment. "

With the intention of attracting foreign capital to continue with the modernization of its industry, especially in new technological sectors, China announces a greater opening of its market that will serve to end the commercial war waged with the United States. since the summer. To a large extent, that peace will depend on how extensive the foreign investment law will be approved next week by the National Assembly. This year's meeting coincides with the last negotiations with the United States. to end the commercial war opened last year by the tariffs of President Trump. With the extension of the truce fixed until March 1, both sides close the final fringes so that Trump and his Chinese counterpart, Xi Jinping, sign an agreement that will settle their disputes, which are already affecting the Chinese economy.

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