The draft of proposed foreign investment law is being reviewed by the Standing Committee of the National People's Congress (NPC) and it seeks to expand the country's opening-up initiative that will benefit investors and the Chinese market.
Tuesday marked the first day of deliberation for the proposed foreign investment law, Xinhua reported. The review is scheduled for two days, following the first draft's submission in last month's session.
Beijing previously announced that it will start opening more doors to foreign investors who want to reap profits from the world's second-largest economy. If the proposed law is approved, it will unify three existing laws that focus on contractual joint ventures, Chinese-foreign equity joint programs, and enterprises owned exclusively by foreigners.
Chairman of the NPC Standing Committee, Li Zhansu, explained the amendments to lawmakers who attended the briefing. Li Yuefeng, a member of the committee, said the new proposal abides by China's legal system and aims to resolve foreign concerns.
In the draft, it is stated that Beijing cannot requisition or expropriate foreign investments. However, under special circumstances and if public interest is at risk, China has the power to retract the policy. If a foreign investment gets expropriated, the proposed law states that "due legal procedures must be followed while prompt, fair and reasonable compensation should be made."
In a report released by the Communist Party of China (CPC), the government reiterated that "China will not close its door to the world; we will only become more and more open."
Other legislators who attended the briefing expressed their eagerness to have the proposed law implemented. Justice Minister Fu Zhenghua said a unified law is urgently needed so Beijing can push through with its plans to leverage on foreign investments.
Before the proposed law is finalized, the government announced that it will allow the submission of public comments until February 24. So far, Beijing has received 500 comments and suggestions from Chinese citizens.
The new foreign investment proposal was created in the midst of a trade dispute between China and the U.S. Chinese officials have arrived in Washington to discuss trade disputes with American leaders.
Financial analyst Naeem Aslam noted in his Forbes report that U.S. President Donald Trump doesn't seem affected by the suffering of American companies due to the trade dispute. On the other hand, China has approached the World Trade Organization (WTO) on Monday, in hopes of putting an end to the problem.
