Investment Law: China promises fair competition
The People's Congress in Beijing has passed a law that seeks to make foreign companies better off. Experts see this as a signal to the US in the trade dispute.
In the context of the trade dispute with the US and growing criticism from Europe, China is turning to foreign companies and investors. At the end of its annual meeting, the People's Congress blessed a new investment law that addresses the discrimination of foreign companies in China and assures fair competition on the outside.
The state must protect "copyright" and ensure that foreign companies are not "disadvantaged", but can participate on an equal footing in the competition, it said in a previously published explanation of the law. 2,929 delegates from the non-freely elected parliament voted in favor, eight against. Another eight abstained.
Experts see the law as a signal to the US, but also to Europe, that the government in Beijing is taking further steps to open the market. However, despite substantial improvements, the Chinese leadership will still have enough leeway to hamper access for foreign companies.
The Washington government accuses the Chinese of the intellectual theft of US technology in the ongoing trade dispute. Foreign companies are also systematically disadvantaged in China. Similar criticism is also from Europe. In response to China's political and economic aspirations, the European Commission tabled a ten-point plan on Tuesday to safeguard European interests.
US President Donald Trump expects news in the coming weeks about the confrontation with China. "There will be news to China," he said at a White House event. "We'll probably know one way or the other in three or four weeks." He added that the Beijing government was very responsible and reasonable.