New Foreign Investment Law draft to be voted on Mar. 15

China's top legislature will vote on its draft Foreign Investment Law on March 15, Zhang Yesui, spokesman for the second plenary session of the 13th National People's Congress (NPC) said Monday in a press conference in Beijing.

"This is a fundamental change in our foreign investment management system, which will improve the openness, transparency and predictability of the investment environment, and provide more effective legal protection for comprehensive opening up," Zhang said.

The Foreign Investment Law draft clearly stipulates that China's foreign investment shall be subject to the pre-entry national treatment plus negative list management system, and the case-by-case approval management mode shall be abolished, according to Zhang.

The negative list will clarify the areas for prohibiting and restricting foreign investors' investment. China's domestic and foreign investment will enjoy the same treatment in areas outside the negative list which will fully open, Zhang explained.

Meanwhile, the draft responds directly to common concerns of foreign investors and makes clear protection provisions for issues such as expropriation and compensation, intellectual property protection, and technology transfer, Zhang added.

As China continues to open up, foreign investors are holding greater expectations for the burgeoning Chinese market. Now the newly proposed law on foreign investment seeks to strengthen the confidence of foreign investors.