China to make forced technology transfer illegal to woo foreign investors

China to make forced technology transfer illegal to woo foreign investors

Beijing will make it illegal to force foreign investors to transfer their technology to Chinese partners while also lowering market barriers for foreign firms to enter the domestic market, a senior economic planning official said on Wednesday, highlighting an effort to lure overseas investment inflows, Trend reports referring to South China Morning Post.

China is expected to pass a new law next week intended to protect the interests of foreign investors, both as a response to demands from the United States that have formed part of the ongoing trade war negotiations, and to help shore up economic growth, which slowed last year to its lowest rate in 28 years.

Foreign investors will be allowed to set up ventures in which they have full ownership, instead of being forced into joint ventures with local partners, in more industries, said Ning Jizhe, a vice-chairman of the National Development and Reform Commission, in Beijing on Wednesday during the National People’s Congress.

In addition, China will set up a special task force to facilitate “key” projects like electric-car maker Tesla’s new factory in Shanghai or BASF’s new chemical complex in Guangdong, both of which are solely owned by the foreign company.

China’s leadership has listed foreign investment as one of the six areas that it must “stabilise” in 2019, along with employment, growth, trade, domestic investment and market expectations.

Foreign direct investment in China amounted to US$135 billion in 2018, an increase of 3 per cent from a year earlier, according to Chinese government data.

But foreign investment into the world’s second biggest economy have slowed over last decade, which could deprive China of access to advanced technologies and marginalise the country in the development of future global supply chains.

Beijing is trying to lure more foreign capital and technology to support its plan to upgrade its manufacturing industries and boost the development of new, hi-tech sectors.

“China will roll out more opening-up measures in the agriculture, mining, manufacturing and service sectors, allowing wholly foreign-owned enterprises in more fields,” Ning said.

Since December, China has been rushing to draft legislation for a new foreign investment law, a key clause of which prohibits local government’s from forcing transfer of technology in return for being allowed to conduct business in their jurisdictions.

The National People’s Congress is expected to endorse the new foreign investment law next week.

“After passing the law, the government will take serious measures to obey and implement it,” Ning added.

He said that China will remove market entry restrictions for foreign investors to ensure that domestic and foreign firms “are treated as equals.”

However, the jury is still out whether Beijing’s promises of fair treatment, market access and protection for intellectual property rights will be enough to generate a steady inflow of hi-tech investment.

The US has long complained that China has been unwilling to implement previous commitments under the World Trade Organisation to open up its market – allegation Beijing denies.

Shen Jianguang, chief economist at JD Digits, an arm of Chinese e-commerce firm JD.com, said restrictions on foreign investment will exist in China despite the government’s promises.

China’s domestic market remains large and attractive for some foreign investors, he said.

“Foreign investors are still very interested in the Chinese market, if the openness of the economy is sufficient,” Shen added.

Subscribe to Trend in Google News! Subscribe
Recognise ‘Hinduphobia’ and violence against Buddhists, Sikhs too: Indian envoy to U.N.
Recognise ‘Hinduphobia’ and violence against Buddhists, Sikhs too: Indian envoy to U.N.
Momentum in India's favour, need to prevail over COVID-19: Deloitte CEO on economic development
Momentum in India's favour, need to prevail over COVID-19: Deloitte CEO on economic development
India extends suspension on international flights till February 28
India extends suspension on international flights till February 28
Loading Bars
Latest
European Hydrogen Backbone joined by six more companies
Swiss Expo inks solar power purchase agreement in Poland
Кazakh Electricity Grid Operating Company opens tender to buy spares for vehicles
Turkmenbashi refinery opens tender to purchase necessary equipment
EBRD to allocate loan for Turkey’s renewable energy sector
Azerbaijan develops action plan to provide liberated areas with internet
Georgia shares data on trade turnover with Azerbaijan
Russian MFA talks about expansion of transport corridors within GUAM
Recognise ‘Hinduphobia’ and violence against Buddhists, Sikhs too: Indian envoy to U.N.
Work related to Armenian crimes against Azerbaijanis continues - Prosecutor General
Momentum in India's favour, need to prevail over COVID-19: Deloitte CEO on economic development
Central Bank of Iran shares data on exchange of bank checks countrywide
Proud to hold TEKNOFEST int'l aviation, space, technology festival in Azerbaijan - Turkish Baykar Makina
EU special rep for South Caucasus to visit Azerbaijan
Iran boasts potential to vastly increase exports to Russia
India extends suspension on international flights till February 28
Kazakh Gas Processing Plant opens tender to buy electric engines
Companies from UAE, Netherlands to build solar photovoltaic stations in Uzbekistan
Israel signs $3.4 bln submarines deal with Germany's Thyssenkrupp
Azerbaijan eyes holding clinical trials of Turkovac COVID-19 vaccine soon
Turkmen state concern to purchase material and technical resources via tender
Georgia names main goods in domestic exports in 2021
Azerbaijani minister talks potential omicron infection rate among local COVID-19 patients
Azerbaijani people honor memory of victims of January 20 tragedy (PHOTO/VIDEO)
Iranian banks issue big loans in services sector
UN Resident Coordinator in Azerbaijan expresses condolences in connection with January 20 tragedy
Ambassador of Kazakhstan to Azerbaijan honors memory of victims of January 20 tragedy (PHOTO)
Uzbek association signs agreement with Russian enterprises to develop textile industry
Inflation accelerating worldwide: How Azerbaijan responds?
Azerbaijan honors memory of martyrs of January 20 tragedy by minute of silence (PHOTO/VIDEO)
Turkish embassy in Azerbaijan shares publication on 32nd anniversary of January 20 tragedy
Turkmenistan's TML eyes co-op with Ukraine's Smart Maritime Group
Uzbekistan to strengthen cooperation with Saudi company in energy field
Leadership of Azerbaijani MoD visits Alley of Martyrs (PHOTO)
Georgia’s revenues from tourism to surge in 2022 – Galt & Taggart
Iran provides several loans in trade sector
January 20 events strengthened resolve of Azerbaijani people for independence - aide to president
Embassy of Kazakhstan in Azerbaijan issues statement on 32nd anniversary of January 20 tragedy
Georgia publishes COVID-19 data for January 20
This irresponsible behavior of French FM also undermines bilateral international obligations of France - Azerbaijani MP
Uzbek Thermal Power Plants JSC to implement major investment projects
Kazakhstan increases production and import of kerosene for 10M2021
Iran reaches significant agreements with Russia in energy sector – minister
Valiant Azerbaijani people stood up for independence on January 20, 1990 - Turkish president's adviser
Loan portfolio of Azerbaijani non-bank credit organization more than doubles
Azerbaijan Transport Agency talks number of passengers on bus trips to liberated areas
Armenia must properly assess new geopolitical realities in region – Aide to Azerbaijani President
Russian Economy Ministry talks about implementation of joint transport projects with Azerbaijan
Georgia to attract new investments in energy sector – minister
Kazakh Samruk-Kazyna, Russian companies to invest in chemical projects
CNPC branch in Turkmenistan opens tender for repair of compressors
Uzbekistan shares domestic COVID-19 data for January 19
Iran's Energy Exchange announces products to be on sale on January 22
Iran establishes container shipping route from Chabahar port to Indian ports
President Ilham Aliyev and First Lady Mehriban Aliyeva visit Alley of Martyrs on 32nd anniversary of 20 January tragedy (PHOTO/VIDEO)
President Raisi's visit to Russia - fundamental change in Iran's international relations - Iran's VP
Azerbaijani oil prices increase
Iran sees increase in exports to Oman
Oil prices hover around 2014 highs, supported by supply concerns
Higher oil revenues to boost Turkmenistan's GDP growth - Fitch
Iranian currency rates for January 20
Azerbaijan's FM meets with head of IAEA in Vienna (PHOTO)
Azerbaijan expects another wave of COVID-19 pandemic - Health Committee of Parliament (VIDEO)
Azerbaijan's Mediation Council, MUSIAD sign cooperation protocol (PHOTO)
ITFC extends $15M line of financing facility to Uzbek Industrial and Construction Bank
ITFC extends US$ 15 Million Line of Trade Financing Facility to Invest Finance Bank
Switzerland recognises Georgian Covid-19 certificates
Economy min: Facilitating banking transactions part of Iran-Russia agreements
Turkey expects coronavirus cases to peak in February
Number of COVID-19 cases in Kazakhstan tops 1,100,000
Chinese bridge at Pangong Tso nears completion, show satellite images
Beijing city raises vigilance as local COVID cases tick higher before Olympics
Over 300 mln COVID-19 cases confirmed all over world, WHO says
U.S., UK launch talks to resolve steel, aluminum dispute
India should adopt risk-based approach not blanket bans to contain Covid - WHO India head
Turkey, UAE sign FX swap deal worth $5 billion
Covid-hit microfinance industry in India seeks higher credit guarantee scheme
Excellent Iran-Russia ties serving strategic goals - Iranian president
Turkey soon to leave currency volatility behind: Erdogan
Cryptocurrency Bill in India unlikely to be introduced in upcoming Budget session
Head of EU delegation expresses condolences to Azerbaijan on occasion of January 20 tragedy
First Vice-President Mehriban Aliyeva makes post on 32nd anniversary of 20 January tragedy (PHOTO)
Azerbaijan commemorates 32nd anniversary of 1990 'Black January' tragedy
Organization of Turkic States makes post in connection with January 20 tragedy
UK shares experience in mine action with Azerbaijan - Ambassador
Azerbaijan adheres to start of delimitation of border with Armenia process without any conditions - minister
PM Johnson drops COVID rules in England
President Ilham Aliyev makes Facebook post on 32nd anniversary of 20 January tragedy (PHOTO)
Afghanistan opens gates of Kamal Khan Dam allowing water into drought-hit Iran
Azerbaijan hosts auction for commissioning mineral deposits
Russia allows tomato imports from several Turkmen enterprises
Azerbaijan to showcase its non-oil products at int’l exhibitions
Price indexes of financial, construction sectors at Uzbek stock exchange fall
Uzbekneftegaz creates new unit to handle partnerships with world's largest financial institutions
Money transfers from Georgia to Azerbaijan increase
Kazakhstan’s December compliance to OPEC+ deal unveiled
Chinese company discloses volume of cargo containers sent to Uzbekistan in 2021
Georgia's Imereti Agrozone receives investment proposals
No apparent crude export impact from civil unrest in Kazakhstan - EIA
Baku refinery increases oil output
All news