New Chinese Law Could Have Benefits Here: Tagicakibau

China’s draft Foreign Invest­ment Law will be put to a vote on March 15 at the cul­mination of the second session of the 13th National People’s Con­gress.

Fijian Ambassador to China

Fiji’s Ambassador to China Ma­nasa Tagicakibau said the key Bill is highly anticipated.

And once passed its implications to Fiji and the international com­munity is massive.

Premier Li Keqiang

While delivering the Chinese gov­ernment’s work report on Tuesday, Chinese Prime Minister Li Ke­qiang said they will work harder to attract foreign investment.

“The government will revise the negative list for foreign invest­ment and thoroughly review and remove restrictions on market ac­cess for foreign investment to sec­tors which are not on the list,” Mr Li said.

“We will steadily open the finan­cial sector, attract greater inflows of long-term funding, and give play to the effective role of long-term international capital,” the government work report said.

“We will refine the system for conducting security reviews of foreign investments.

“Steady progress will be made in reforming the foreign-debt regis­tration system to ensure a higher level of supervision and manage­ment.”

Opening Up and reform

Responding to queries from the Fiji Sun, Mr Tagicakibau said the law would play a major part in China’s continuous Opening-Up Reforms and Initiatives to be the Number One Economy by 2030.

He said the new law offers huge incentives to all foreign enter­prises to increase their stakes in China’s mainland market.

“Currently, foreigners face a num­ber of bureaucratic processes and hassles to register and grow their business,” Mr Tagicakibau said.

Free Trade Agreement

“This legislative will help address this issue.

“It also aims at higher market ac­cessibility and protection of intel­lectual property rights.”

Mr Tagicakibau said this would be beneficial to Fiji “as we are fi­nalising our Free Trade Agree­ment with China and protection of our Fijian Made products and unique brands.

“Examples are Pure Fiji, Fiji Wa­ter, amongst others.”

Law to open-up Chinese Investors to the world

“Our understanding is that the law will further open up the Chi­nese Investors to the world.

“It will place greater confidence and transparency to the financial environment in China.

“Fair settlement principles, same due processes applied to foreign and local investors to establish and grow their businesses within mainland China.”

Free Trade Zones

Free Trade Zones (FTZs) will also be further boosted under this new law.

This is where managerial bar­riers will be removed and market conditions liberalised to allow for companies to enter the Chinese market through these zones, exam­ple, in Hainan and Shanghai.

Chinese International Import and Expo

Investors participating in this year’s China International Import and Export Expo (CIIE) will also enjoy special benefits and coverage to enter the Chinese market.

Foreign investment existing law

During a press conference on Monday, Congress spokesperson Zhang Yesui said the existing laws on foreign investments no longer serve the purpose of building a new and open economic structure.

Previously, foreign investment in China has been built on three piec­es of legislation.

These are namely the; Chinese Foreign Equity Joint Ventures Law, the Wholly Owned Enter­prises Law and the Chinese Owned Contractual Joint Ventures Law.

Exisiting law

“In recent years as China con­tinues to open up and with all the changes in the field of foreign in­vestment.

“We have come to a point where the three existing laws are no longer keeping abreast with the need to build a new, open economic structure. That is why we are mak­ing this new legislation in order to update the legal framework,” Mr Zhang said.

New law

Mr Zhang said: “The new law will replace the three existing laws and serve as the basic law on foreign investment.”

The current practice of case by case approval will be abolished.

He said and the new law will in­clude a negative list.

Industries

“Industries where foreign invest­ment is prohibited or restricted are specified in the negative list,” he said.

“Industries not on the list will be fully open with domestic and for­eign companies enjoying the same treatment.

Foreign investment management system

“So, it is a fundamental change to China’s foreign investment man­agement system.

“And it will help create a more open, transparent and predictable environment for investors and provide longer legal guarantee for greater opening across the board.”

He added that issues of great interest to foreign investors like expropriation, compensation, pro­tection of intellectual property and technology transfer will be ad­dressed in the new legislation.

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