China's New Investment Law Puts Foreign Firms on Notice

  • China drops clauses in draft that threatened its tech sector
  • Foreign companies may need to forge new contracts with locals
Bloomberg’s Lulu Chen reports on the new rules for foreign investment that China is planning to approve.(Source: Bloomberg)
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China is planning to approve new rules for foreign investment in the country this week, a sweeping overhaul of regulations that will affect corporate titans from Ford to Alibaba and Tencent.

The regulations are slated for passage Friday by the National People’s Congress during a once-a-year gathering of legislators to seal the country’s most important policies. Key pillars of the new law will remove a major threat to investors in its massive technology sector, while putting thousands of overseas companies on notice they may need to renegotiate joint ventures in China.