China to attract foreign investment with better business environment

China will introduce more measures and foster a more enabling business environment to facilitate foreign investment, according to a State Council executive meeting chaired by Premier Li Keqiang Wednesday.

Chinese Premier Li Keqiang visits a startup community in Xi'an, capital of northwest China's Shaanxi Province, October 15, 2019. [Photo: Xinhua]

The meeting decided to open up more areas. Restrictive measures outside the national and pilot free trade zones negative lists concerning foreign investors' market access will be scrapped.

Restrictions on the business scopes of foreign-invested banks, securities companies and fund management firms already established in China will be fully lifted.

The newly revised administrative regulations on foreign-invested banks and insurance companies will be fully implemented. Policies on foreign investment in the auto industry will be refined, including equal treatment in market access for both domestic and foreign-invested new energy vehicles made in China.

"We must improve our policies and implement them well," Li said. "Promises made must be kept. No failure in keeping our word is allowed."

It was decided at the meeting to further facilitate investment. The pilot reform to promote the payments of revenues under capital accounts will be introduced in more places.

Foreign-invested companies will be supported in independently choosing the models of borrowing from foreign lenders, and will be encouraged to use their capital funds for equity investment in China. For foreign-invested projects, the preliminary reviews of site selection and land use will be consolidated, and the permitting requirements for the planning and use of construction land will also be combined.

The meeting urged equal protection of the lawful rights and interests of foreign investors. Forced transfer of technology, including those in disguised forms, is not allowed. Trade secrets will be protected in accordance with the law. The notification-removal rule concerning patent infringement at e-commerce platforms will be improved.

In government procurement, there should be no restrictions based on the ownership type of suppliers, nationality of investors, or the brands of products and services. Local governments will be supported in intensifying efforts to attract foreign investment. Central and western parts of China will be prioritized in setting up new comprehensive bonded zones.

Figures released in September by the Ministry of Commerce show that in the first eight months of this year, another 27,704 foreign-invested businesses were established in China. Utilized foreign capital exceeded 600 billion yuan (about 84.81 billion U.S. dollars), up by 6.9 percent year on year.