Fully Implementing Equal Treatment for Domestic and Foreign-funded Enterprises

Recently, the National Development and Reform Commission and the Ministry of Commerce issued the Special Administrative Measures for Foreign Investment Access (Negative List) (2019 edition) and the Special Administrative Measures for Foreign Investment Access (Negative List) (2019 edition) in the Free Trade Pilot Area. For the main principles to be grasped when revising the negative list, the responsible person of the National Development and Reform Commission (NDRC) said that through the unified supervision of domestic and foreign investment, risks can be prevented from being included in the negative list. In accordance with the requirements of building a unified, open and orderly market system, with the continuous improvement of various regulatory systems, all areas where unified and effective supervision of domestic and foreign investment can be achieved, access restrictions for foreign investment alone will be abolished, and all types of market players will compete equally.

"Full implementation of equal treatment" is China's solemn commitment to the world. "The full implementation of equal treatment means adhering to the principles of marketization, legalization and internationalization, and adhering to the equality of rights, opportunities and rules for all types of market participants." Zhang Huanbo, deputy director of the American and European Institute of China International Economic Exchange Center, said that after these years of development, the differences between domestic and foreign investment management in China have been small. Full implementation of equal treatment means that there will be "zero difference" beyond the negative list.

"Utilizing foreign capital is an important part of China's basic national policy of opening up to the outside world and the new system of open economy, which has played an active role in the process of economic development and deepening reform." The responsible person of the National Development and Reform Commission said.

In order to ensure equal participation of domestic and foreign investment in market competition, the Foreign Investment Law passed in March this year has put forward many specific measures, including "the equal application of various policies of state support for enterprise development by foreign investment enterprises according to law", "the state guarantees equal participation of foreign investment enterprises in standard formulation according to law", "government procurement compliance". The law gives equal treatment to the products and services produced by foreign-invested enterprises in China, and so on. Recently, the National Development and Reform Commission (NDRC) publicly solicited opinions on the Regulations on Optimizing the Business Environment (Draft for Opinions). In accordance with the requirements of open and transparent rules, fair and just supervision, convenient and efficient service and legal protection of the legitimate rights and interests of various market players, China will set up a unified, open and orderly modern market system to meet the international first-class standards and create a good environment for investment and business development of various market players.

According to the draft for consultation, in terms of equal access to factors, the state guarantees equal access to human resources, funds, land use rights and natural resources by market participants of all types of ownership in accordance with the law, and fair participation in market competition. In tendering and bidding and government procurement, we should be open, transparent, fair and fair, treat all kinds of ownership and market entities in different regions equally, and not restrict or exclude them under unreasonable conditions. In protecting the legitimate rights and interests of market participants, the state protects the property rights and other legitimate rights and interests of market participants of all types of ownership according to law. Experts said that the full implementation of equal treatment would help to build a more dynamic and efficient market system and achieve common development and mutual benefit and win-win situation for all kinds of market players. Since the reform and opening-up, enterprises of all countries have shared opportunities for China's development through investment in China. Chinese enterprises have also raised the overall level in international cooperation, which has led to the comprehensive development of international trade and foreign investment. Effectively giving equal treatment to domestic and foreign-funded enterprises is conducive to creating a stable, transparent, predictable and fair market environment for competition. It is also conducive to the equal participation of all kinds of enterprises in China and to achieving a higher level and higher quality of development in the new pattern of comprehensive opening up. Article 26 of the Foreign Investment Law clearly stipulates that the State shall establish a complaint mechanism for foreign-invested enterprises, deal with the problems reflected by foreign-invested enterprises or their investors in a timely manner, and coordinate and improve relevant policies and measures. "Our country has always attached great importance to communication with foreign-funded enterprises. Establishing a smooth complaint mechanism for foreign-funded enterprises will help to better communicate and solve problems, and further enhance the long-term confidence of foreign investors in China. Zhang Huanbo said.

Opening up, China is determined to take action. "China's huge market, economic and social stability, complete industrial support, complete infrastructure and abundant human resources, with the deepening of opening up, will create more development opportunities for investors from all over the world." The responsible person of the National Development and Reform Commission said.