China is unlikely to soon change its laws on foreign-invested companies, which stipulate preferential policies in operation and income taxation, said Jiang Ping, a well-known professor of law, at a forum yesterday.
Several famous economists and legal experts attended the forum to give their insight into the newly approved 11th Five-Year Plan (2006-10) of economic growth and social development.
The forum was organized by China Europe International Business School and co-sponsored by China Daily's CEO Roundtable and the Asia Wall Street Journal.
"Though the general trend is to unify its laws on domestic and foreign-invested enterprises in the long run, the legislative body will not do this in the near future," said Jiang, former president of China University of Political Science and Law.
Government officials have said the country will stick to its on-going reform and opening-up policies, he noted. To attract foreign funds, China has adopted special laws on operation and income taxation for foreign-invested companies.
But there has been debate recently that foreign investment could threaten the development of China's domestic industry.
Jiang said China's legislation will become more integrated with international practice, and would include the modification of the bankruptcy law, anti-monopoly law, as well the partnership business law.
"Considering that China's market is still not well-regulated, greater efforts will be made in legislation and law enforcement to build-up a market system based on competition," said Jiang, who has participated in the drafting of many important laws and regulations in the past.
(China Daily 04/07/2006 page2)