The implementation of the Foreign Investment Law has achieved remarkable results

Since the implementation of the Foreign Investment Law for more than a year, it has achieved remarkable results. The law has effectively guaranteed that China’s use of foreign capital increase by 4.5% against the challenge of the coronavirus pandemic. In 2020, 51,000 new foreign-invested enterprises will be established.

Since the implementation of the Foreign Investment Law for more than a year, it has created a more market-oriented, legalized, and international investment environment for foreign investors and foreign-invested enterprises. China’s foreign investment has bucked the trend and increased by 4.5%, and the scale and global share of foreign investment have reached a record high , thus making China the ountry of world’s largest foreign capital inflow.

5 distinct features are represented in the law.

Much easier access to foreign capitals . The pre-access national treatment plus negative list management system has been implemented in depth. At the same time, investment entities have become more independent in their choices. Foreign investors and Chinese natural persons have established nearly 9,000 foreign-funded enterprises in joint ventures in 2020 alone.

Investment activities are more convenient. The approval and filing of the establishment and change of foreign-funded enterprises in the commercial field are canceled. Information reporting system is implemented, and the registration of foreign-funded enterprises in the market supervision department is directly processed. Approximately 99% of foreign investment projects implement informative filing were processed through online platforms.

The service system is more complete. Set up special classes for key foreign-funded projects, and the central government has helped solve 252 difficult problems such as shortage of epidemic prevention materials, poor cross-border logistics, and coordinated resumption of work between upstream and downstream, as reported by foreign-funded enterprises.

Rights protection is more effective. The “Measures for Complaints by Foreign-invested Enterprises” was issued, and the directory of complaint agencies in various regions was compiled and published. The complaints channels for foreign-funded enterprises were more smooth and convenient, and the procedures were clearer and more operable.

Competition is fairer. The Foreign Investment Law provides a solid legal guarantee for foreign-funded enterprises’ equal participation in government procurement and bidding. Foreign-funded enterprises’ equal participation in standardization work has made positive progress. In 2020, nearly 100 foreign-funded enterprises participated in the formulation and revision of national standards.

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