The full text of the government’s recently drafted foreign investment law says that China will ensure equal treatment of foreign firms operating in its borders and protection of their intellectual property, as policymakers seek to appease Western grievances.
The law will ban mandatory technology transfers from foreign companies and prohibits government intervention in the day-to-day running of foreign-owned companies, reports the SCMP.
Under the new framework, overseas-listed firms will be able to raise funds by issuing stocks and bonds, and will be not face capital constraints sending income abroad.
The draft also reserves to China the right to take responsive measures if Chinese firms face discriminatory treatment overseas, and will apply increased scrutiny to any foreign investment with national security implications.
The new law is under public review until February 24, before which the US and China are set to meet in Beijing for another round of trade talks.
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