Beijing [China], Mar 15 (ANI): China's national legislature on Friday passed a new foreign investment law that aims to improve transparency and ensure a level playing field for domestic and foreign businesses.
An overwhelming majority of deputies present at the closing meeting of second session of 13th National People's Congress voted in favour of the law.
With unified provisions for the entry, promotion, protection and management of foreign investment, it is a new and fundamental law for China's foreign investment, said state news agency Xinhua.
"The law aims to improve the transparency of foreign investment policies, and ensure domestic and foreign enterprises are subject to a unified set of rules and compete on a level playing field," it said quoting to an explanatory document.
The new norms will come into effect from January 1, 2020.
The new foreign investment law will replace three existing laws on foreign investment: laws on Chinese Foreign Equity Joint Ventures, Chinese Foreign Contractual Joint Ventures and Wholly Foreign-Owned Enterprises.
Foreign investments into China have risen substantially over recent years. Many experts believe the existing laws are no longer able to meet the needs of the new era.