The new foreign investment law helps multinational chemical companies to further squeeze the domestic chemical market!

Global Coatings Network News:

On December 23, the draft foreign investment law was submitted to the seventh meeting of the Standing Committee of the 13th National People’s Congress for deliberation.

On September 11, the Saudi Basic Industries Corporation (SABIC) announced that SABIC and the Fujian Provincial Government of China have signed a memorandum of understanding on investing in a "world-scale" 10-million-ton petrochemical project.

Followed by The Dow Chemical Company announced that it would invest 324 million yuan in China, construction of a new organic silicon resin plant.

On October 16, CNOOC and Shell signed a memorandum of understanding on cooperation in the Huizhou petrochemical and chemical project with a total investment of billions of dollars in The Hague, the Netherlands, to build the third phase of the project in China and build the world's largest integrated refining and chemical base.

This draft strengthens the constraints on the formulation of regulatory documents involving foreign investment, stipulating that the government and its relevant departments shall comply with laws and regulations when formulating regulatory documents involving foreign investment, and shall not illegally detract from the legitimate rights and interests of foreign-invested enterprises or increase their obligations, and shall not Illegal setting of market access and exit conditions, illegal intervention or affecting the normal production and operation activities of foreign-invested enterprises.

Unlike domestic investors who pay more attention to the government's "red-head documents", foreign investors pay more attention to the law because they tend to conduct risk assessments and make investment plans long in advance, while the latter is obviously more stable and predictable.

This draft formally broke the previous model of local governments focusing on policies in attracting investment, and reduced the negative impact on the investment expectations and confidence of foreign investors due to the repetition and fluctuation of investment policies.

The review of the draft means that the integration of the three laws in the field of foreign investment has taken a substantive step, and the first unified basic law in the field of foreign investment is ready to come out.

There are no worries for multinational companies to invest in China.
Naturally, they will spare no effort to seize China's future* global chemical market.
The trend has long been unstoppable, and competition in the domestic chemical industry will inevitably intensify.