Against the Background of the trade dispute with the United States and increasing criticism from Europe and China to go to foreign companies and investors. At the conclusion of his annual meeting of the national people’s Congress approved on Friday a new law that responds to the disadvantage of foreign companies in China and fair competition.
“If we promise Opening, we will provide you with security,” said China’s Prime Minister Li Keqiang at a press conference following the national people’s Congress. The new investment law was designed “to protect the rights and interests of foreign investors”.
“It is a clear Signal to the United States, but Europe, too, that Beijing is taking further steps to open up the market,” said Katja in Hausen from the China Institute Merics in Berlin. Despite “substantial improvements” to the law but, above all, a symbolic gesture. The Chinese leadership remained sufficient scope to make it more difficult to access for foreign companies.
observers noted that the law was presented as a response to the trade dispute with the United States significantly accelerated. Both countries have been stalling for months to each other with high specific duties. Meanwhile, around half of the US is charged to imports from China with additional duties.
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Li Keqiang order calls for quick end to the trade dispute
Li Keqiang, a quick end to the dispute wished to have on Friday. He hope that in the negotiations, “good results” to be achieved. The two largest economies in the world were closely intertwined. Decoupling is neither realistic nor possible.
In the ongoing conflict, US President, Donald Trump had made shortly before, an agreement or a Failure of the negotiations in the coming weeks. “Probably, we will know one way or another in the next three to four weeks notice,” said Trump on Thursday evening at a reception in the White house. He commented positively on the progress of the talks and certificated by the Chinese side, “to be very responsible and very reasonable.”
The United States demand more market access in China, a reduction in the US trade deficit, as well as a better protection against piracy, and forced technology transfer for operating in China are US companies. The United States also object to government support of Chinese companies, which distorts the market.
in Europe is Also increasing criticism of China’s state economy. As a reaction to the political and economic power of China, the EU-Commission had braces on Tuesday a Ten-point Plan will be presented to European interests.
a Central Element of the new investment law of the Chinese, the fundamental principle of equal treatment of foreign investment. The state must protect “copyrights,” and ensure that foreign companies “at a disadvantage”, but “equal” part in the competition, it said in an official explanation of the law text. A prescribed transfer of technology is prohibited. However, there are still negative lists of sectors in which foreign investments or companies do not or only to a limited extent be allowed.
in the face of a trade war with the United States and the high indebtedness, the economic Outlook in China are looking increasingly gloomy. You will counteract with further tax cuts and less taxes to the downward pressure, said Li Keqiang: “We certainly need to take strong measures to deal with the increasing uncertainty done”. As concrete steps, he called for lower taxes for businesses, as well as a reduction in social security contributions. So the economy should be stimulated.
Li Keqiang expressed his confidence that Beijing can reach to the people’s Congress, adopted the growth target of 6 to 6.5 percent this year. It would be the slowest growth in 30 years.
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Benedikt Voigt
The national people’s Congress approved on Friday the expenditure in the new budget, the total to 6.5 percent. With 7.5 percent of the military gets a lot more of. In his history of the people’s Congress has never rejected a submission. (dpa)
