By Rui Hu, iChongqing News

Foreign Investment Law of the People's Republic of China was adopted at the 2nd session of the 13th National People's Congress on March 15, 2019. This law focuses on establishing a fundamental and institutional framework and rules for foreign investment, which will take effect on January 1, 2020. The alternation of old and new laws in the field of foreign investment is related to the vital interests of nearly 960,000 foreign-funded enterprises, which has caused widespread concern and heated discussion among them. iChongqing has conducted interviews with Cecille El Beleidi, Consul General of the British Consulate-General Chongqing, and Dióssi Lóránd, Consul General of the Consulate General of Hungary in Chongqing to better understand their positioning and perspectives on cooperation with China.

Cecille El Beleidi: new reform and opening-up provide a very good start

Cecille El Beleidi, Consul General of the British Consulate-General Chongqing

iChongqing has questioned about how Government Work Permit relates to the foreign companies in China and how it effects on cooperation between British firms in Chongqing. According to Cecille El Beleidi’s response, she suggested that it is clear from the Government Work Report that much thought has been given to developing support for foreign companies looking to do business in China. The key now will be timely and consistent implementation of the favorable policies outlined. Besides, Cecille El Beleidi has some specific comments on the interview.

Firstly, the new Foreign Investment Law (including new measures for protecting foreign companies from IP infringement, technology theft, forced tech transfers, greater access to procurement etc) is encouraging and we look forward to robust implementation. This answer addressed the effects that Foreign Investment Law may bring on existing and future cooperation. Secondly, the work report’s focus on improving the business environment is hugely important. Delivering a business environment in which foreign investors are protected, and treated equally to domestic competitors, alongside incentives related to specific sectors, will do much to encourage foreign investment in China. Demonstrated from Cecille, she hopes to see a clear timeline for further liberalization and opening up, including easing investment restrictions across all sectors, amendments to technology import-export regulations and ensuring government procurement follows WTO standards. Additionally, she looks forward to seeing Premier Li’s promise of a further-reduced Foreign Investment Negative List, and hope that joint venture requirements as a whole will be abolished.

Overall, Cecille indicated that true reform and opening will help deliver the economic strength both China and U.K. need to face today’s challenging financial global climate.  The measures described above, aimed at supporting collaborative and innovative business, provide a very good start to the process.  

Dióssi Lóránd: expect further cooperation opportunities between Hungary and Chongqing

Dióssi Lóránd, Consul General of the Hungary Consulate-General Chongqing

According to Mr. Dióssi, the key cooperation between Hungary and Chongqing has been upgraded since 2016. The Declaration of Establishment of the Chinese-Hungarian Technology Transfer Center (Chongqing) was singed on November 4th, 2016. “Chongqing is similar to Hungary”, said Mr. Dióssi, he also pointed out that Chongqing’s GDP growth remained high among Chinese cities. In 2018, Chongqing has reached its GDP growth of 6.0% whereas Hungary’s GDP growth is about 5%, when asked about the Government Work Report, he answered that good growth had been made in 2018. “Hungary`s economy has a fast development when compared with other European countries, though it is still slower than Chongqing. However, we have many similarities and cooperation such as IT and automobile industry. Our IT and automobile industry are the most important aspects in local economy”. Therefore, on his perspective, since Hungary Consulate-General Chongqing started their engagement with Chongqing, they have made great efforts in patent projects and technology cooperation.

“The promulgation and implementation of the Foreign Investment Law should be one of the most significant achievements of the Two Sessions this year. This law provides stronger protection for foreign investment in China. In the long run, it will guarantee investor confidence, and will also help improve cooperation between China and foreign countries in innovation and make China's business environment healthier.” Besides, in terms of Mr. Dióssi, the new Foreign Investment Law will protect Hungarian patent projects in a better way, which could attract more commercial possibilities. When questioned about the how Foreign Investment Law effects on foreign business in China, Mr. Dióssi said. In addition, China has huge budget investments in Hungary, Mr. Dióssi indicated, “Hungary has obtained the biggest investment from China in Europe. China has done good growth in 2018 and I`m looking forward to further possibilities in 2019.” Mr. Dióssi has introduced more information about the cooperation between China and Hungary.       

As the day of interview is the 171st anniversary of the 1848-1849 Revolution and the War of Independence in Hungary and the 70th anniversary of the establishment of diplomatic relations between Hungary and the People's Republic of China, and the opening ceremony of the 7th Hungarian Cultural Spring in Western China, these are cultural exchanges and interactions that aim to enhance the friendship between Hungary and China.