Legal changes in preparation for the nation's impending entry into the World Trade Organization (WTO) will move on a step today as legislators vote on amendments relating to foreign investment.
These revisions are based on pledges made by the Chinese Government during negotiations for the nation's WTO accession and are widely seen as a move to boost foreign investors' confidence.
The amendments refer to Chinese-foreign joint ventures, Chinese-foreign co-operatives and solely owned foreign funded ventures in China.
The changes, being discussed by the National People's Congress, China's legislation body, will generally help foreign firms compete equally with Chinese companies.
Recent revisions on rules relating to foreign trade and economic cooperation were made in preparation for WTO entry, said legislator Li Yining.
The legislation body should now review all domestic laws and rules relating to the WTO and establish a transparent legal system as entry into the WTO requires such commitments by member governments, he added.
China has already finished revising a number of laws, including a patent law, to make them more compatible with WTO rules.
In addition, vice-president of the Supreme People's Court, Li Guoguang, said Chinese courts will give priority to WTO rules over China's domestic laws when handling civil cases involving foreigners after the nation joins the organization, if the two laws are inconsistent.
In cases where Chinese law is consistent with WTO rules, Chinese laws will be applied, he added.
Li Guoguang added Chinese courts will guarantee equal protection to Chinese and foreign litigants.
(China Daily October 31, 2000)
