(Yicai Global) Dec. 24 -- China intends to establish a foreign investment law for the first time to make it easier for foreign-funded firms and investors to do business in China, as well as protect intellectual property rights.

Chinese policymakers submitted a draft of the foreign investment law at the seventh meeting of the standing committee of the 13th National People's Congress, which is the country's top legislature, that met in Beijing yesterday.

The state will ensure that IP rights of overseas investors and foreign-invested enterprises are safe, according to the draft. It also encourages technical cooperation on a voluntary basis.

China will not principally levy taxes on offshore-based investors. Any duties that are imposed must be justified by the needs of public interest. 

Foreign investors' profits and capital gains may be transferred abroad freely in Chinese yuan or exchanged to another currency.

The government also pledged its departments to make foreign firms' market access, business conditions and withdrawal fair, while not interfering with their operations. 

Editor: Emmi Laine