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By Zhang Chun & Zhang Jin, China Development Research Foundation & Ma Xiaobai, Enterprise Research Institute, DRC

Research Report, No.137, 2019 (Total 5637) 2019-8-16

Abstract: The interview and survey results on 45 transnational companies among the Global 500 show that the these companies believe that China’s Foreign Investment Law is of great significance and they maintain that this law has enhanced the protection for the rights and interests of foreign investment and will facilitate foreign investors’ investment in China. But they also hold doubts about the fact whether the legislative objectives could be realized as some of the provisions and terms in the law seem to be rather abstract without adequate supporting mechanisms for implementation. These companies hope that the law could focus on the specific problems relating to foreign investment, the supporting rules and regulations for implementation of Foreign Investment Law could be formulated in a timely manner, the investment environment could become more stable and transparent, and the mechanisms to promote and protect foreign investment could be continuously improved. The optimization of Foreign Investment Law holds the key to the improvement of business environment, and it could provide a solid legal cornerstone for China’s further opening up and enable China to make effective and law-based use of foreign investment.

Key words: Foreign Investment Law, supporting regulations, business environment, use of foreign investment, transnational companies