China to strengthen economic globalization

The Foreign Investment Law adopted by the National People's Congress in March this year demonstrates the firm commitment of the Chinese government to opening up, which was embodied in the three laws governing foreign investment that have been in force in the past 40-plus years of reform and opening-up. The Foreign Investment Law has consolidated the previous three laws. It shows the Chinese government's consistent position on opening up.

Second, the Foreign Investment Law demonstrates a new, more open attitude, which is reflected by a negative list approach to foreign investment. We have just issued the 2019 edition of the negative lists. We will continue to make the lists shorter and open more areas to foreign investment according to the principle that areas that are not on the lists will all be deemed fully open.

Third, the Foreign Investment Law stresses the importance of effectively protecting the lawful rights and interests of foreign investors. Quite a portion of the law is devoted to the protection of their rights and interests, including stronger protection of intellectual property rights. It is also stipulated in the law that all foreign-invested companies registered in China will receive equal treatment as their Chinese counterparts.

The Foreign Investment Law embodies continuity as it carries forward the principles and concepts developed in the three laws of the 1980s and it has added new and innovative provisions. We are drafting matching regulations and ordinances which will enter into force together with the law on 1 January next year. The goal is to foster a stable, transparent and predictable investment environment for foreign investors. Given the sheer size of China, foreign investors may still encounter some problems in their operations. But one thing remains clear, that is, we will protect the rights and interests of foreign investors and we will make the Chinese market more open.

Takeshi Niinami, CEO of Suntory: Since last year, some manufacturing companies have shifted their production from China to other countries, like Southeast Asia. As a matter of fact, we are in China and we are investing more. How will this trend impact your economy and what are your countermeasures?

Premier Li: The fact that the Japanese business leader asked the question in both Chinese and English shows the trend of internationalization. Economic globalization has shaped a global industrial chain that keeps improving itself on the basis of general stability. This is a natural result of different countries leveraging their comparative advantages and their positions in the international division of labor. The global industrial chain has closely connected countries' economies and interests. Those with stronger competitiveness are able to offer more and better choices to consumers.