Foreign investments law: what is going to change? – Mark Schaub

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Mark Schaub

Some analysts see in the new Foreign Investment Law a way for China to placate the US, but China veteran Mark Schaub sees here no quick fix triggered off by the trade war. It is the first new foreign investment law since the Berlin Wall came down, he says to the BBC News Service.

Then China’s companies did not invest at that time as much as they do now. Chinese consumers did not purchase as much as they do now, he says. The way China is going to regulate foreign exchange is one of the key new subjects, he says, although he expects there will be less forced technology transfers in the automotive and telecom industries.

Chinese laws at best give a direction for the future, he warns. You will not see fast changes very quickly.

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