China passes Foreign Investment Law

China's Foreign Investment Law (FIL) was passed at the second session of the 13th National People's Congress (NPC), the country's top legislature, on Friday.

The FIL is a "fundamental law" supporting a high standard of opening-up under new circumstances, Li Zhanshu, Chairman of the Standing Committee of the NPC said.

The FILwill come into effect from January 1, 2020.

Formation of the Foreign Investment Law

Foreign investment into China has risen substantially over recent years, and existing laws on foreign investment are no longer able to meet the needs of the new era.

The foreign investment law will replace three existing laws on foreign investment, namely the laws on Chinese-Foreign Equity Joint Ventures, Chinese-Foreign Contractual Joint Ventures and Wholly Foreign-Owned Enterprises.

China started planning a new law in 2015, and the FIL went through two readings by the NPC Standing Committee before being passed.

(CGTN)