Investment environment to become more stable and open, govt says

China's investment environment is expected to become more stable, open and transparent, as the draft foreign investment law stipulates foreign enterprises will receive pre-established national treatment plus a negative list management system, according to the Ministry of Commerce on Saturday.

The foreign investment law is expected to help establish an environment where foreign companies can compete fairly in China, and better protect the legitimate rights and interests of foreign investors, Wang Shouwen, vice-minister of commerce, said at a news conference during the two sessions.

Foreign companies will enjoy the same rights as domestic companies to participate in activities including issuing stocks and bidding for government procurement projects in China, according to the draft law.

Wang also cited that the law will protect the intellectual property rights of foreign investors and encourage technology cooperation based on voluntary principles and commercial rules.

On March 15, the draft law would be introduced to the top legislature for deliberation. If approved, it would replace three statutes on wholly foreign-owned entities and joint ventures.

Under such a backdrop, Wang predicted that the country's foreign direct investment will remain stable this year, with improved quality and optimized structure.