China to issue guidelines to optimize foreign investment policies

China will roll out guidelines to create a more "fair, transparent and predictable" business environment for foreign-invested enterprises.

The guidelines, which were adopted in principle at an executive meeting of the State Council held on October 16, will soon be released, said Wang Shouwen, vice minister of China's Ministry of Commerce, on Tuesday.

Reduce negative list for foreign investment

The guidelines will continue to deepen opening-up by reducing the negative list for foreign investment access in the national and pilot free trade zones, and comprehensively eliminate restrictions that are not on the negative list.

Better measures to promote foreign investment 

China will also optimize related services for foreign-invested enterprises and improve the construction of pilot free trade zones.

The country will lower the cost of cross-border capital use, make it easier for foreigners to work in China, and optimize the approval process for the use of land for foreign-funded projects.

Stronger protection on legitimate rights and interests of foreign investors

Under the guidelines, China will fully implement the foreign investment law, establish and improve institutions for accepting complaints.

The country will give full play to the role of judicial protection of intellectual property rights (IPR), improve the IPR protection mechanism, support both domestic and foreign enterprises in their fair participation in standardization, and ensure their equal participation in government procurement, Wang said.

China has been working hard on improving the business environment, both for domestic and foreign market participants, as its economic reform and opening-up deepen. 

A series of guidelines has been released in order to build a more foreign-friendly financial market in China. 

In March, China passed the Foreign Investment Law.

In July, the country announced a move to end foreign ownership limits on brokerages, fund management firms as well as futures companies in 2020, a year earlier than originally planned. A clear timetable has been set recently. According to China Securities Regulatory Commission, foreign ownership limits on fund management firms will be lifted starting April 1 next year, while shareholding caps on foreign investors currently faced by brokerages will be scrapped from December 1 next year.

The State Administration of Foreign Exchange last Friday also introduced 12 measures to facilitate cross-border trade and investment.