New law gives foreign investors teeth in bite of China market

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BEIJING (Xinhua): The foreign investment law took effect in China starting Wednesday (Jan 1) to better protect the interests of foreign investors in the country by granting them broader access to government procurement markets through fair competition.

In a world fraught with uncertainties, foreign firms in China have something certain to expect for 2020 and beyond: a more law-based business environment.

Previously, foreign investment in China was mainly regulated by three separate laws on Chinese-foreign equity joint ventures, wholly foreign-owned enterprises and Chinese-foreign contractual joint ventures. Foreign companies are entitled to equal participation as their domestically-invested peers in the formulation and revision of national, industrial and local standards in accordance with the law.Wei said foreign investors could rest assured about the earnest law implementation by local governments and the consistency of China's policy stance as the country's top leadership have voiced commitment to opening doors wider.

The new law is hailed as a boost to foreign firms' confidence in expanding investment in the world's largest developing economy.

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