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What is The Foreign Investment Law

What is The Foreign Investment Law

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foreign investment Law

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First, politics background

On March 15, 2019, the Second Session of the 13th National People's Congress voted to pass the Foreign Investment Law of the People's Republic of China, replacing the original Sino-foreign Joint Venture Law, the Foreign Investment Enterprise Law, and the Sino-foreign Joint Venture Enterprise Law ( That is, "three foreign laws"), since January 1, 2020

Implemented. The "Foreign Investment Law" has become one of the biggest highlights of the global attention during the two sessions. Its introduction marks a new journey for China to move towards full openness and high level of openness. What is the close relationship between the introduction of the Foreign Investment Law and the political discipline? Today, Mr. Zhang Xiaojia will give you a lecture and introduce you to the Foreign Investment Law under the reform and opening up.

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The experience of reform and opening up for forty years shows that China has persisted in opening the country and building it, and has continuously expanded its opening up to the outside world and achieved remarkable development achievements. Foreign investment has also become an important force in promoting China's economic and social development. By the end of 2018, China had established a total of 960,000 foreign-invested enterprises, and the accumulated actual use of foreign capital exceeded US2.1 trillion. However, in recent years, protectionism and unilateralism have become popular. Some developed countries such as the United States have even spread trade wars to developing countries such as Africa. Globalization has experienced unprecedented twists and turns. In this context, China promulgated the "Foreign Investment Law", which is not only to further expand opening up, actively promote foreign investment, protect the legitimate rights and interests of foreign investment, regulate foreign investment management, and open up a new realm of state governance modernization, but also Contributed to "Chinese wisdom" for global governance.

First of all, the "Foreign Investment Law" once again reflects China's determination to comprehensively promote the rule of law. The "three foreign laws" formulated at the beginning of reform and opening up provided legal guarantees for China to use foreign capital and set up foreign-invested enterprises, and opened the door to China's introduction of foreign investment. However, the "three foreign laws" have been difficult to adapt to the need to build a new open economic system and promote the formation of a new pattern of comprehensive openness. It is urgent to formulate a unified foreign-funded basic law. The Foreign Investment Law will also provide comprehensive rule of law guarantee for the ["Belt and Road" cooperation.

Secondly, the promulgation process of the Foreign Investment Law has undergone a long period of review and public consultation, and has a broad public opinion base. It took more than three years from the drafting of the draft to the National People's Congress. The legislative department often seeks opinions from internal and external enterprises and industry associations on the draft legislation, including special symposiums to listen to opinions.
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Third, the formulation of the Foreign Investment Law reflects the legislative process of China's rise from local governance experience to national governance. In order to promote reform and opening up under the new situation, the Party Central Committee and the State Council have successively decided to set up 12 free trade pilot zones such as Shanghai. The Pilot Free Trade Zone actively explores innovations in foreign investment management models. Since October 2016, the negative list management model of the Pilot Free Trade Zone has been promoted nationwide. Based on this, the Foreign Investment Law incorporates many strategically valuable achievements into the legal system. In practice, the local governance experience is copied, promoted and raised into national laws, forming new directions and guidelines.

Finally, the Foreign Investment Law reflects China`s ambition to explore how developing countries can use foreign capital to achieve independent development. The Foreign Investment Law clearly stipulates that [the state gives foreign treatment to foreign investors outside the negative list," said Angao Bo, president of Merck Group China. [I saw the Foreign Investment Law provides for foreign investment in China. Stronger protection will ensure investor confidence in the long run, and will also help improve cooperation between China and foreign countries in innovation and make China's business environment healthier."

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II.1. Analysis from the perspective of "economic life"

(1) China is a basic economic system in which public ownership is the mainstay and multiple forms of ownership are developed together. Foreign investment has become an important force driving China's economic and social development.

(2) The non-public economy is an important part of the socialist market economy. The non-public economy plays an important role in supporting economic growth, promoting innovation, expanding employment, and increasing tax revenue. Foreign investment has become an important force driving China's economic and social development.

(3) The trend of economic globalization is irreversible. The "Foreign Investment Law" was enacted to further expand opening up and actively promote foreign investment.

(4) Comprehensively improve the level of open-end economy and adhere to the strategy of combining [introduction" and [going out". The "Foreign Investment Law" was enacted to further expand opening up and actively promote foreign investment.

(5) China's new development concept is "innovation, coordination, green, open, and sharing." The "Foreign Investment Law" was promulgated in order to further expand opening up and actively promote foreign investment.

2. Analysis from the perspective of "political life"

(1) The National People's Congress has the highest legislative power. The Second Session of the 13th National People's Congress voted to pass the Foreign Investment Law of the People's Republic of China.

(2) Citizens participate in democratic decision-making through social conditions and public opinion reflection systems and expert consultation systems. The promulgation process of the Foreign Investment Law has undergone long-term validation and public consultation, and has a broad public opinion base.

(3) The trend of multi-polarization in the world is developing in depth. China is an important force for promoting common development of the world and a responsible big country. The Foreign Investment Law contributed to "China's wisdom" for global governance.

3. Analysis from the perspective of "life and philosophy"

(1) Material determines consciousness and requires everything to proceed from reality. However, in recent years, protectionism and unilateralism have become popular, and spheroidization has suffered unprecedented twists and turns. In this context, China promulgated the Foreign Investment Law.

(2) Consciousness has the ability to act, and people can move to understand the world and transform the world. China's promulgation of the "Foreign Investment Law" is not only to further expand the opening up, but also to actively promote foreign investment, protect the legitimate rights and interests of foreign investment, regulate foreign investment management, open up a new realm of state governance modernization, and contribute "Chinese wisdom" to global governance. ".

(3) The contact is universal and requires a view from the point of view. The Foreign Investment Law will also provide comprehensive rule of law guarantee for the [Belt and Road" cooperation.

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(4) The universality of contradiction lies in the particularity and is manifested through speciality. The Foreign Investment Law incorporates many strategically valuable achievements into the legal system. In practice, it replicates, promotes and promotes local governance experience into national laws, forming new directions and guidelines.

(5) Production relations must adapt to productivity. At present, the "three foreign laws" have been difficult to adapt to the need to build a new open economic system and promote the formation of a new pattern of comprehensive openness. It is urgent to formulate a unified foreign-funded basic law.

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