The foreign investment law will come into force on January 1, 2020
To ensure the effective implementation of the law, Regulations on the Implementation of the Foreign Investment Law of PRC (exposure draft ) drafted by Ministry of Justice, Ministry of Commerce, Development and Reform Commission and other departments was recently published through the network to solicit opinions from the general public.
According to the exposure draft:The state plans to establish a punitive compensation system for intellectual property infringement to improve the mechanism for the diversified resolution of intellectual property disputes and the assistance mechanism for the protection of intellectual property rights and so as to strengthen the protection of intellectual property rights of foreign investors and foreign-invested enterprises.
The relevant provisions prohibiting the use of administrative means to force foreign investors and foreign-invested enterprises to transfer technology, as well as the provisions about administrative organs and their staff strictly protect the business secrets of foreign-invested enterprises that they come to know in the course of performing their duties, are further elaborated.
In general, there are three main characteristics, one is to strengthen the consistency of domestic and foreign investment, the other is to strengthen investment protection, the third is to strengthen legal responsibility.