Draft foreign investment law levels playing field

BEIJING - A draft foreign investment law pending a third reading includes many stipulations that ensure domestic and foreign enterprises are subject to a unified set of rules and compete on a level playing field, says an explanatory document on the draft available to the press Friday.

Government policies supporting enterprise development shall apply equally to foreign-invested enterprises, says the document.

The state shall guarantee that foreign-invested enterprises are able to participate in standard-setting work on an equal footing in accordance with law, and mandatory state standards shall apply equally to them, according to the document.

The state shall guarantee that foreign-invested enterprises can take part in government procurement activities through fair competition in accordance with law, and government procurement shall afford, in accordance with law, equal treatment to products of foreign-invested enterprises produced in China, it says.

The conditions for technological cooperation in an investment project shall be negotiated in a fair and equal manner and agreed upon by all parties to the investment, and government bodies and their employees shall be prohibited from using administrative measures to force technology transfer.

Sectors not on the entry negative list for foreign investment will be managed in accordance with the principle of equal treatment for domestic and foreign capital.

Competent authorities shall review foreign investors' license applications with the same conditions and procedures as those for domestic investors, unless otherwise stipulated in other laws or administrative regulations, according to the document.