THE country’s new law governing foreign investment that will take effect next year addresses some of the core concerns of companies operating in the country, though questions remain on how it will be implemented, according to organizations representing U.S. and European firms.

A draft of regulations related to the law takes a positive step toward dealing with issues around access to China’s market and intellectual property protection, the U.S.-China Business Council said. The implementation guidelines have added clarity in a number of areas, though some could be clarified further, the EU Chamber of Commerce added.

The document that was circulated to some organizations for comment pledges greater recourse when intellectual property rights are violated and allows foreign firms to interact with local governments and also participate in the drafting of standards and government procurement, U.S.-China Business Council vice President Jake Parker said. It also emphasizes that government officials can’t compel the transfer of technology from foreign companies, he said.

The new law aims to level the playing field by treating both foreign and domestic firms equally, and promises to do more to protect overseas companies’ technology and know-how. The law was passed in March and the government is now circulating draft regulations on how it will be implemented to foreign firms and chambers of commerce, looking for feedback.

The draft was sent around by the State Council, the National Development and Reform Commission, and the Ministry of Justice, with a deadline for feedback at the end of the month, according to Adam Dunnett, secretary-general of the EU Chamber of Commerce.(SD-Agencies)