Shanghai (ZXZC)- The National People's Congress (NPC) of China on March 15 approved the foreign investment law, a landmark legislation enacted to offer stronger protection and a better business environment for foreign investors. The new law will officially come into effect on January 1, 2020.

In accordance with the law, foreign-invested enterprises will equally enjoy governmental policies formulated to boost business development, and be able to participate in standard-setting process and government procurement on an equal footing.

“The launch of foreign investment law will ensure that there are rules to follow and laws to go by for China’s higher-level opening-up. It will further enhance overseas investor's confidence in Chinese market and is conducive to maintaining China's position as one of most attractive destinations for foreigner investors. Besides, it will also offer a crucial development opportunity to China's automotive industry,” said Chen Hong, chairman of SAIC Motor and deputy to the NPC.

BMW Group announced in last October together with its partner Brilliance China Automotive Holdings Ltd. the early extension of the joint venture contract and the further deepening of the existing collaboration. Moreover, BMW also said it intended to increase its stake in BMW Brilliance Automotive Ltd from 50% to 75% and two parties had signed a corresponding agreement.

Another global auto giant Volkswagen will decide whether it make sense to raise its stake in Chinese joint ventures at the end of 2019 or beginning of next year, Herbert Diess, CEO of Volkswagen Group, said on March 12.