Meeting with Deputy Director-General Li Li, Department of Policy Research, Ministry of Commerce (MOFCOM)

2019-06-20 | Beijing

On 20^th June, a delegation from the European Chamber led by Peter Ling-Vannerus, national chair of the Banking and Security Working Group, visited the Ministry of Commerce (MOFCOM) for a meeting hosted by Deputy Director-General (DDG) Li Li, Department of Policy Research. Representatives from the Banking and Securities, Insurance, Healthcare Equipment and Consumable and Disposable Medical Devices working groups as well as the Government Affairs Forum and Pediatric Nutrition Desk attended the meeting.

DDG Li arranged this meeting in light of the new Foreign Investment Law (FIL) and recent instructions from top leaders on further opening up of the Chinese market. He hoped to hear from leading foreign companies on the difficulties they face while operating in China, and their comments on the new FIL. Members from all sectors shared their comments and advice:

• Approval rate of registration and opening new branches for foreign businesses are typically lower than for their Chinese counterparts, the timespan is much longer, too;
• Unequal treatment is experienced by foreign firms on the provincial level in foreign exchange restrictions, the government procurement process, etc. Government actions still lack transparency;
• Numerous clauses in the Foreign Investment Law are either too vague or too general, leaving possibilities of misinterpretation;
• The household registration and Visa policies pose challenges to companies looking for talented personnel;
• Protection of intellectual property and business confidential awaits further enforcement;
• Existing policies that contradict the Foreign Investment Law need and the promise of “equal treatment” need to be revised or removed;

In response, Director Zhang Xueyuan of the Investment Division and Director Wang Yupeng from the Department of European Affairs noted that businesses should utilize numerous channels to report their problems and advice, they proposed for enhanced communication between the Ministry and the Chamber and requested for detailed reports regarding the mergers and acquisition in specific.

DDG Li thanked the attendees for actively sharing their thoughts and ideas, she acknowledged that the vast investment inflow poses great legislative pressure and challenge to the Chinese government, and the Ministry has a lot to learn from their European counterpart’s past experiences. She proposed for regular exchanges between businesses and the Ministry to be made through the platform European Chamber offers.