Authorities to Solicit Ideas to Build a Level Playground for Businesses
Government officials are trying to solicit ideas that will help build a playing ground that is level for all businesses whether domestically of overseas. China must combines foreign investment law with company laws thus giving national treatment to overseas companies that are based on the Chinese mainland. This will also pave the way for the country to progress in corporate governance.
The National People’s Congress has also promised to speed up its research on new corporate legal framework and will soon release a proposed draft when the time is right. The director for the Department of Foreign Investment Administration at the Ministry of Commerce stated that the revisions during this time is aimed to unify domestic laws on foreign investments and focuses on equal treatment of foreign and domestic investments, advance reforms of foreign investment regulation and strengthen security reviews.
A China-US Business Council has also called for the elimination of the term foreign invested enterprises. They say by continuing the use of this term is an invite to differential treatment of various types of domestic versus others that is soley based on ownership. Furthermore government regulators must act independently and transparently to ensure all domestic enterprises including those foreign invested enterprises are treated equally and will be allowed to compete fairly.
Also based on a reform plan that was released last year, the Chinese central government must pledged to expand investment access, regulations on domestic and foreign investments and unify laws and at the same time keep stable and transparent and predictable policies on foreign investment.