EU Chamber says China's new foreign investment law is 'surprisingly accommodating'

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The law is set to take effect Jan. 1 and aims to address complaints about forced technology transfer and lack of intellectual property protection.

Wuttke also pointed out that China would like to attract more foreign investment as its economic growth slows.Tingshu Wang | Reutersgovernment is trying to show how serious it is about improving the local business environment for foreign companies.

The law, set to take effect Jan. 1, puts a strong emphasis on preventing Chinese entities from forcing foreign companies to transfer valuable technology in order to do business in China, and also improves protection of trade secrets, Wuttke said. We are entering a phase of economic headwinds. These matters are of great importance to make sure foreign investors find China attractive.When the foreign investment law was passed at an annual congress in March, some business leaders worried that the new rules were turned into law too quickly — justsince the first draft — and contained vague wording that could make enforcement difficult.

"Not only does the Chinese state continue support beyond any reasonable limit, they often balk when foreign buyers want to come to the rescue. The 'not for sale' sign on Chinese companies is a pillar in the edifice of a state-directed economic system," Scott Kennedy, senior adviser at the Center for Strategic and International Studies, and Daniel H.

 

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