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China’s new foreign investment law opens the door wider to overseas firms. But they’ll have to step up their game to make the most of it

China has just passed a new law that will replace existing regulations on wholly foreign-owned enterprises and on joint ventures involving overseas companies. In response to changing global realities and the need to further open up its economy, the new law includes many stipulations that aim to foster a level playing field for foreign and domestic enterprises. Forced technology transfer, one of the main issues driving the US-China trade war, will now be banned. The law also emphasises… Source link

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China 

China risks ‘the legitimacy of the Communist Party’s regime’ without changes, says law professor

China risks a “downturn that will fundamentally shake the legitimacy of the Communist Party’s regime” if it does not make structural reforms and fulfil the commitments it made when joining the World Trade Organisation, according to outspoken law professor He Weifang.Central to the ongoing trade war with the United States have been issues raised by US President Donald Trump surrounding forced technology transfer, intellectual property theft and market access, all of which are areas China… Source link

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New law gives Hongkongers tax break of US$7,650 in a bid to boost their inadequate pension savings

Hong Kong’s lawmakers unanimously passed an amended law on Wednesday that allows up to HK$60,000 (US$7,650) in tax deductions in a bid to encourage more voluntary retirement savings in pension schemes and address the shortfall.The change comes into effect on April 1 and taxpayers will be able to claim the deduction on their tax returns in the new financial year.“The tax law change is aimed at encouraging more people to better prepare for their retirement,” said Wong Ting-kwong, a lawmaker from… Source link

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China 

Chinese Premier Li Keqiang says foreign investment law shows Beijing is serious about opening economy further

The passage of the new foreign investment law shows China is serious about addressing foreign investors’ concerns, as it continues to open up its domestic market, Chinese Premier Li Keqiang said on Friday.But while foreign observers agreed the law is a step in the right direction, concerns remain that it does not go far enough. There is also widespread doubt among the foreign business community that it will be effectively implemented.In total, 2,929 lawmakers at the National People’s Congress … Source link

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China 

China approves new foreign investment law designed to level domestic playing field for overseas investors

China approved its new foreign investment law on Friday, sending the message that Beijing wants to level the playing field for overseas investors and reassure the global community it remains at attractive investment destination.The final draft of foreign investment law was approved by 2929 National People’s Congress lawmakers in the Great Hall of the People, with 8 opposing the measures and 8 abstaining.The new law will come into effect on January 1, 2020.Beijing rushed the law through the… Source link

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China 

China’s new foreign investment law is too vague, says US business group

China’s new foreign investment law has received a lukewarm response from a leading US business group, which complained about a lack of consultation and detail.Beijing hoped that the new laws would help improve its image among global investors and also help address some of the concerns at the heart of the trade war with the US, but the American Chamber of Commerce in China said its provisions were “still quite general” and did not go into specifics.The group continued that “in principle [it]… Source link

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China 

‘We will keep your secrets’, China promises foreign companies with new law

Chinese officials will be obliged to protect commercially confidential information they obtain from overseas businesses, according to the latest draft of China’s new foreign investment law. Delegates to the National People’s Congress in Beijing were presented with the new version on Tuesday, after last week’s version received a lukewarm response from foreign businesses and academics in China. Provisions have been added to the legislation which make clear that Chinese government employees must… Source link

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China 

Will a new Chinese law level the playing field for foreign investors?

China’s top legislators will vote next week a new law that its backers say will level the playing field for foreign investors, as Beijing tries to fend off complaints from Washington and Brussels about unfair trade practices.The latest draft of the foreign investment law was presented to the National People’s Congress for discussion in the Chinese capital on Friday and its progress will be closely watched by investors at home and abroad.Wang Chen, vice-chairman of the NPC’s Standing Committee,… Source link

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China’s rushed foreign investment law gains lukewarm response from local and international businesses

China’s draft foreign investment law is expected to be one of the flagship announcements at the ongoing National People’s Congress in Beijing, but it has received a lukewarm response from businesses and academics in China.Among the foreign business community in China, there is a shared view that the draft foreign investment law (FIL) lacks substance and that it is being rushed through in a bid to meet some of the terms of a trade war truce laid out by US President Donald Trump.“We are… Source link

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China 

China’s foreign investment law will apply to Hong Kong, Macau and Taiwan

China’s new foreign investment law – to be passed during the annual legislative session that opens on Tuesday – will also apply to investors from Hong Kong, Macau and Taiwan.Zhang Yesui, spokesman for the 11-day National People’s Congress, clarified on Monday that the new legislation would cover investments from the three places – something that was not explicitly stated in the draft bill that has been out for consultation since December. The legislation is expected to be tabled on Saturday… Source link

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