It is something that foreign investors are not very happy about when they look at the Chinese market. Non-Chinese companies must enter into a joint venture with a Chinese company if they want to be active in the market. This often means that technology is being transferred, which, of course, foreign companies are not happy about. But this may come to an end.
At least that’s what the Chinese news organization Sunday reports. There would be a new law in the making that would put an end to the practice of joint ventures. The new law would ensure that foreign investors and companies enjoy the same benefits as Chinese firms. This applies to most industries, although a few would be excluded.
Throw open the land
The Standing Committee of the National People’s Congress in China has already discussed the matter. In order to open the country to foreign investors, while protecting the legitimate rights and interests of foreign investors, as well as forming a new pattern of comprehensive opening, the law has been proposed.
The Nikkei Asian Review believes that the new law has been proposed to address Washington’s concerns. Currently, the two countries are negotiating to end a trade war. At the moment, there is a degree of calm in the trade dispute and the countries are not introducing any new taxes until 1 March 2019. Then the deadline of the negotiations expires.
In any case, analysts think that the new law, if it comes into force, will allow certain investors who are now reluctant to enter the Chinese market to do so. This could be good both for the Chinese labour market and for the consumers there.
This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.
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