Amendments to Law on Chinese-Foreign Equity Joint Ventures submitted to NPC

Draft amendments to Law on Chinese-Foreign Equity Joint Ventures, which aim to lift certain restrictions on such enterprises, were submitted Friday to the ongoing session of the Nation People's Congress for adoption.

The amendments abolish stipulations in the law that require joint ventures to give priority to Chinese-made raw materials when they purchase raw materials for production, and to report their production plans to government departments concerned.

Gu Angran, director of the Legislative Affairs Commission of the NPC Standing Committee, said when he explained the draft amendments to the lawmakers that the revisions are "a move aimed at making the country's laws consistent with principles of a market economy and compatible with its impending accession to the World Trade Organization."

Other two laws relating to foreign investment in China -- Law on Foreign-Funded Enterprises and Law on Chinese-Foreign Contratual Enterprises -- were amended by the NPC Standing Committee in October, 2000. The amendments were similar to the just-submitted draft amendments.

The draft amendments to Law on Chinese-Foreign Equity Joint Ventures were discussed by the executive body of the NPC last October, but as the law stipulates that any amendment to it requires approval by the full session of the NPC, it is now submitted to the session for adoption.

The draft amendments presented today also include an article proposing that this particular stipulation be abolished so that future amendment to the law will be easier.

Gu said that this stipulation, which was made in the early years when China began to open its door to the outside world, was intended to ensure the stability of the country's investment environment.

"But it is no longer needed today, and the NPC Standing Committee should be authorized to revise the law when in need," he said.

(Xinhua 03/09/2001)

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