THE country’s national legislature Friday passed the foreign investment law at the closing meeting of its annual session. The law will become effective Jan. 1, 2020.

An overwhelming majority of the deputies present at the closing meeting of the second session of the 13th National People’s Congress voted in favor of the law.

With unified provisions for the entry, promotion, protection and management of foreign investment, it is a new and fundamental law for China’s foreign investment.

The law aims to improve the transparency of foreign investment policies and ensure domestic and foreign enterprises are subject to a unified set of rules and compete on a level playing field, according to an explanatory document.

Premier Li Keqiang met the press at the Great Hall of the People after the conclusion of the session.

China will introduce a series of regulations and documents in accordance with the foreign investment law to protect the legitimate rights and interests of foreign investors, said Li.

This is an important thing China is to do in the next step to ensure that the law is implemented smoothly, Li said.

Li underscored efforts to make the complaint mechanism open, transparent and effective.

Li also said China’s adoption of a GDP target range this year is consistent with the government’s determination of not allowing major economic indicators to slide out of proper ranges.

As for tax cuts, Li said that the country is determined to implement larger scale tax and fee cuts this year as a key countermeasure against downward economic pressure.

The move is expected to deliver a dividend of nearly two trillion yuan (US$297 billion) to the companies, Li said.

Noting that the reform requires exceptional courage and determination, Li said the government must live on a tight budget given the drop in fiscal revenues.

“This is not something taking an overdraft on our future, but nurturing a better tomorrow,” he said.

Li Keqiang also said the country will further improve its business environment to unleash market vitality and creativity.

Although the business environment in China has notably improved in the past few years thanks to government reform, the improvement still falls short of market expectations, Li told a press conference after the conclusion of the annual session of China’s national legislature.

In 2018, China advanced to a global ranking of 46 in terms of ease of doing business, up from 78 in 2017, according to a World Bank Group report.

“To further improve the business environment, the government will continue to focus on streamlining administrative approvals and delegating power to lower levels, as well as on improving regulation,” Li said.

China will ensure that companies of all types of ownership will stand to benefit as equals from the measures of administrative streamlining, he added.

When it comes to small and micro firms, Li said the country will further cut the financing cost for those companies by another one percentage point this year

Serving the real economy is the bounden duty of the financial sector, Li said.

Li said China will continue to exercise accommodative and prudential regulations on new business models such as Internet Plus and sharing economy.

New business models should be allowed a good chance to grow and develop, and the government needs to detect and address any problems that come along the way, he said at a press conference after the conclusion of the annual legislative session.

By prudential regulation, the government needs to draw a clear bottom line involving public safety and security, Li added.

Our purpose is to foster an enabling environment for all entrepreneurs and provide our companies good opportunities in developing new drivers of growth, the premier said.

Li said the country will ensure the creation of more than 11 million new urban jobs this year.

As for questions regarding people’s livelihood, Li said the country will provide better care for senior citizens and children.

Issues related to the aged and child care concern the Chinese people most. “They demand more attention from us,” Li said.

An insufficient nursery and kindergarten service is particularly prominent after the full implementation of the two-child policy, Li said.

Nursing homes can provide only three beds for every 100 senior citizens in the country. The supply of aged care facilities lags far behind the demand, according to Li.

Plus, the country will further ease the burden on patients with chronic or serious diseases this year, said Li.

Outpatient medicines for treating chronic diseases such as high blood pressure and diabetes will be made reimbursable under the medical insurance scheme, with the reimbursement rate set at 50 percent. The move will benefit some 400 million patients, Li said.

Meanwhile, China plans to lower the deductible threshold and raise the reimbursement rate for serious illnesses, he added.

Li noted that good outcomes are hoped to be delivered out of the economic and trade consultations between China and the United States.

Li also said the country hopes to have a stable neighborhood, valuing its ties with Northeast Asia, Southeast Asia and all neighbors.

(Xinhua)