Call for Comments: Draft Foreign Investment Law and Patent Law

Published on 2019-01-16

The Chinese government has released a revised draft for Foreign Investment Law and a revised draft Patent Law last December and is consulting public opinion.

The British Chamber of Commerce Shanghai invites its members to share with us your views and comments on the draft laws. Comments will be forwarded to the British Chamber of Commerce in China, who will submit comments received to the National People’s Congress (NPC).

The draft Foreign Investment Law (EnglishChinesesummary) indicates the government's willingness to further open up its markets to foreign businesses and address complaints that have been prevalent among foreign investors. Key points from the draft Foreign Investment Law:

  • Officials are prohibited from using administrative means to force foreign businesses to transfer their technology
  • Foreign investors enjoy equal treatment and market access with domestic counterparts in China, except in excluded sectors specified in the government's negative list
  • China reserves the right to retaliate against countries that discriminate against Chinese investment with "corresponding measures"

The draft Patent Law (Chinesesummary) similarly addresses priority issues for foreign businesses regarding intellectual property rights protection, a notable area of concern highlighted in BritCham's Member Sentiment Survey. Key points from the draft Patent Law:

  • Higher penalties for patent infringement
  • The term of patents has been extended to 15 years, up from 10 years
  • Clarifying a shift of the burden of proof to the defendant under a duty to cooperate in providing relevant information

Please download the form here and submit your comments to by Tuesday 22nd January
We look forward to receiving your response.