China’s First Draft Foreign Investment Law

China’s First Draft Foreign Investment Law
Image source: YouTube Video Screenshot

CGTN asked foreign companies questions on topics of concern and said the new law would provide a fairer and more transparent investment environment as well as boost investor confidence.

China’s First Draft Foreign Investment Law

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Well the law is a very important thing. I see that as they are important to state. Could you see China is deepening is a reform and opening further to the outside world. Basically that law provides the legal background legal insurance that all foreign participants in the Chinese economic process will be treated equally. So called a national treatment and there will be an active list next to list on the list that is basically some of these off limits areas or areas for investment which are somewhat restrictions. But the the is the best that you can do whatever investment you know and also there will be a registration system instead of a approval system. You do that registration into the investment. You don't need to go through this lengthy usually the approval process.

So it's making it easier to do investments in China and you will be treated the same as the Chinese a local company let's say. And of course in terms of IPR protection there would be better protection stressing in facing a punitive competition. I mentioned in the Premier's work report also. So basically China is applying more punitive or more punishing of a penalty on those who you know broke is violating this IPR laws IPR regulations over there because you know look you know you cannot complete the job overnight because for every country it's a process. But for China there is a strong incentive is not only protecting the IPR property of foreign investors but also the Chinese own companies. For example, “This is a Wanderin Earth,” he movie very popular in the Chinese movie theater over there. But after one week after the premiere of this movie you do see this is a copy cats online copycats very cheap. And you can't get access to the movie. So that's a serious violation of the copyright of the producers over there. So you need a crackdown. You'll need a strong law to protect the property of the producer there. And I mentioned to China is leading in many new technologies like artificial intelligence 5G just natural you'll need the protection of those inventions of those dimensions in order to force a very positive environment for further innovation for further creation.

So we've got one question now the other way. What is your second question.

Thank you very much. The second question is if a foreign bribes a Chinese government official how will they be punished under Chinese law.

That's an interesting one.

Right. Previously I think he knew full well off the Chinese that developing country. I think you can find in many fields why we call on a developing country because for many many the topics that you are still developing into sophisticated practice for example anti bribery anti-corruption campaign anti corruption law previously it's illegal for there's a bribery case the person who received the bribery that would be punished under Chinese law but not to the one who perhaps would veto the bribe that's in the past practice but since the last year we have a new basically commission we call it you know we called the super supervisory body. This is was the year my understanding I'm not a legal expert that the my understanding is like them and add that to new practice. If there's a who's bribing the official whether a foreign businessman old Chinese there's a man who will also be held accountable not in the lot like in the past that somehow we will be free from PUP from punishment. No it's not anymore.

Well we hope that answers the questions that are on the minds of our viewers and the social media use higher standards of practice. Exactly. Sherry thank you so much for your insight and also on my colleagues young Daniel Leo Chan thank you for your participation.

Now every day over the next two weeks global watch and CGTN's new media team will bring you the latest on China's political season. We have more on today's coverage of the two sessions. Live coverage will also be available on the CGT and app. Stay with us. And for this year's two sessions political season CGTN's Chris are presenting their observations on hot issues happening in China. Today we focus on the major risks.

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Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
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