China is moving forward with their foreign investment law at an unprecedented pace to meet US’s demands on trade, but businesses fear that the time to review and raise objections on a crucial piece of legislation has been cut short.
The law will eliminate the requirement for foreign enterprises to transfer proprietary technology to Chinese joint-venture partners. It also includes other steps to level the business playing field that Western trading partners have long demanded.
China's Parliament is expected to vote on the legislation in March - barely two months after debating a first draft.
Mr Wang Jiangyu, an expert on Chinese law at the National University of Singapore quotes:
Normally it would take one to three years for a Bill to be passed and signed into law.
Foreign businesses worry the draft glosses over details and that vague language leaves room for broad interpretation.
EU and China
Both the EU and American trade chambers are also urging China to consider having a single Company Law to govern both foreign and domestic enterprises, as is common in many countries.
" Mr Harborn said.
Mr Harborn quotes:
It's now time to make sure that all companies are seen as making the same positive contribution to China when it comes to growth, employment, taxes, R&D and so on. There shouldn't be a distinction based on where the investment comes from.
The latest draft stipulates that all national security review decisions are final, implying no administrative or legal appeals were possible.
Both the EU and American trade chambers are also urging China to consider having a single Company Law to govern both foreign and domestic enterprises, as is common in many countries.
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