China’s new foreign investment law will be passed during the current NPC session, said the South China Morning Post. The new law will ensure equal treatment and intellectual property protection for overseas firms in China. The law will also apply to investors from Hong Kong, Macau and Taiwan.
“In practice, we manage these investments [from Hong Kong, Macau and Taiwan] by referencing them as foreign investment. This will not change with the new legislation in place,” said NPC spokesman Zhang Yesui.
The legal status of investments from the territories has yet to be defined by the law, raising concerns about whether a potential change in legal status could damage the business of companies based in Hong Kong, Macau and Taiwan.
Representatives from Hong Kong and other territories have called on officials to further define the legal and regulatory outlines to avoid turmoil after the bill is passed.
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