Chinese draft bill would protect foreign investment, prevents forced tech transfers

There is no news on if the bill will affect Canada.

Chinese legislators are reviewing draft legislation that aims to protect foreign investment and prevent forced transfer of technology.

According to China’s largest newspaper publication, the People’s Daily, the lawmakers started a meeting on December 23rd, 2018 to discuss the draft legislation. The law would mean intellectual property rights of overseas investors would be protected and would encourage voluntary technology transfers, but forbid forced transfers using administrative measures.

Bloomberg reported on Sunday that China’s legislature started its first reading and proposed the legislature in a way to ease tensions in the midst of a trade war with the U.S. It said that if proposed legislation was implemented it would address a topic that the U.S. has been concerned with for a while.

The draft bill also says it would adopt a nationwide “negative list” for foreign investments. That means if a country is not on the list then they will be treated like domestic investments.

It’s important to note that there is no news if this bill could affect Canada in any way.

Source: Bloomberg