Revised law to facilitate foreign investment in China: Nestle CEO

Source:Global Times Published: 2019/3/10 17:18:39

Rashid Qureshi, chairman and CEO of Nestle Photo: Courtesy of Nestle

The draft revision of the Foreign Investment Law, which is under review during China's two sessions, marks an important measure of the country's reform and opening-up, said a senior executive of a transnational company.

"With three laws merged into one, the new law will have unified requirements and standards for foreign-invested enterprises in China, making it easier for foreign investors to understand the foreign investment access system and its requirements. This will be a big step forward in facilitating investment," Rashid Qureshi, chairman and CEO of Nestle, told the Global Times over the weekend.

The previous approval policy for foreign investment has been replaced by a notification system, which simplifies the process of entry and operation for foreign enterprises in China and creates a more favorable investment environment, Qureshi said.

The new law will strengthen the protection of intellectual property rights of enterprises investing in China and ban any move to force foreign companies to provide technology transfers to Chinese partners, he added.

The draft of the Foreign Investment Law will be submitted to the second session of the 13th National People's Congress for deliberation, according to an explanatory document on the draft released to the press on Friday, the Xinhua News Agency reported.

Conditions for technological cooperation in an investment project shall be negotiated in a fair and equal manner and agreed upon by all parties to the investment. Government bodies and their employees shall be prohibited from using administrative measures to force technology transfers, according to the document.

The state shall guarantee that foreign-invested enterprises can take part in government procurement through fair competition in accordance with the law, and government procurement shall afford, in accordance with the law, equal treatment to products of foreign-invested enterprises produced in China, it said. 

"With the improvement of relevant laws and regulations, we feel that the administrative authorities have significantly improved their efficiency and enhanced their service awareness, such as the business and taxation authorities," Qureshi noted.



Posted in: COMPANIES,BIZ FOCUS,HIGHLIGHT REPORTS

blog comments powered by Disqus