(CFP Photo)
The Standing Committee of the 14th Jiangsu Provincial People's Congress reviewed the draft regulation on foreign investment in the province during its third session on May 29.
The regional law aims to provide practical provisions on the attraction and utilization of foreign investment, as well as the protection of the legitimate rights and interests of the investment.
In 2022, Jiangsu's actual use of foreign investment increased by 5.7% year-on-year to $30.5 billion, accounting for 16.1% of the total in China, and continued to lead the country.
Chen Tao, director of the province's Department of Commerce, said Jiangsu needs to establish additional stipulations regarding foreign investment in line with the national top strategy and the province's reality, especially in areas such as improving the investment promotion, strengthening the protection of foreign investment rights and interests.
Jiangsu encourages foreign investment, establishes and improves mechanisms for the promotion and protection of foreign investment, and fosters a market-oriented and world-class business environment underpinned by a sound legal framework, according to the general provisions in the draft.
One article states that the province forbids efforts to formulate and implement policies and measures, either directly or in disguised form, that discriminate against foreign-invested enterprises, in order to ensure that they receive equal treatment in aspects of operations, bidding, tax and fee reductions.
According to some articles in the draft, Jiangsu shall not impose differentiated treatment towards products and services of domestic and foreign-invested enterprises, and shall not hinder the participation of foreign-invested enterprises in fair competition.
Stressing that foreign-invested enterprises should equally benefit from support policies introduced by the state and the province, Jiangsu will ensure that foreign-invested enterprises can participate fairly in government procurement and in the enactment and revision of local standards.
The draft specifies that local governments at all levels should fulfill the policy commitments made to foreign investors and foreign-invested enterprises in accordance with the law and agreements. The agreements shall not be annulled due to adjustments to administrative divisions, changes in the government, modification of institutional agencies or functions, and the replacement of responsible personnel.
The legislation further improves the complaint mechanism related to foreign-invested enterprises and enhanced the coordination to address such matters. It stipulates that the commercial department will lead coordination efforts across departments and regions and also strengthen the complaint resolution system with the support of relevant departments. The draft regulation also encourages arbitration institutions to explore innovative methods and make the process more international.
To address concerns about intellectual property rights, Jiangsu plans to establish a rapid coordination system across regions and departments and hold those infringing intellectual property rights strictly accountable in accordance with the law. Furthermore, the province's judicial authorities will strengthen the protection of business secrets in accordance with the law and fully safeguard legitimate rights and interests.
