Unified provisions expected to greatly stimulate foreign enterprises' interest
When the new Foreign Investment Law took effect on Jan 1, Shanghai Zunyun Consulting and Management Co Ltd became the first company in the city to receive the foreign-invested business license.
Although the consulting company is jointly set up by three partners from China and the United States, it is no longer defined as a Chinese-foreign venture. This definition, as well as the term Chinese-foreign cooperative entity, have become obsolete under the Foreign Investment Law. The new definition, as the Zunyun business license shows, is "foreign-invested, not wholly foreign-owned".
Multinational companies applauded the new law.
Yin Zheng, the president of Schneider Electric China, said the new law is a milestone for China's opening-up, which will enter a new phase featuring systematic opening-up. The Chinese market will better integrate into the international market, while multinational companies' global expansion will greatly benefit, he said.
"The protection of intellectual property rights, which is stressed in the new law, will create a fairer market environment for multinational companies," Yin added. "Therefore, Schneider Electric will increase our research and development investment in China by 50 percent in the next three years."
