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The drafting of a foreign investment law is "timely" and "necessary", and is expected to foster the best-ever playing field for foreign companies while bolstering the confidence of domestic companies to compete globally, members of the National Committee of the 13th Chinese People"s Political Consultative Conference said on Saturday.

"It is a timely law," said Zhou Hanmin, a member of the Standing Committee of the 13th CPPCC National Committee, during a panel discussion on foreign investment law at the ongoing two sessions.

"Many detailed articles will directly dispel foreign investors" unnecessary concerns. It (the draft law) also illustrates China"s unswerving willingness to offer them a long-term and stable law, (and) a transparent and open business environment," he said.

According to Zhou, the latest draft law confirms that foreign businesses can be assured of pre-establishment national treatment, better protection of intellectual property rights, the prohibition of forced technology transfers and the ability to compete for government procurement contracts.

"It also sends a stronger signal about "protecting" the legitimate rights of foreign investors, which is a notable improvement because previous laws placed great emphasis on "encouraging" foreign investment," he said.

Zhang Yuyan, director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences and a member of the 13th CPPCC National Committee, called the latest draft law "very necessary".

"Through formulating such a law, China, as a responsible world power, is promoting economic globalization and the free flow of cross-border trade and capital," he said.

"On the other hand, as a developing country, China welcomes foreign businesses to play a critical role in its sustainable economic growth," Zhang said, adding that the law will help strengthen the country"s competitiveness in both trade and investment.

By the end of October, about 950,000 foreign-funded companies had registered in China, bringing total investment of more than $2.1 trillion, according to a report by Xinhua News Agency.

Equity is mentioned repeatedly in the draft law. That has boosted the confidence of Zheng Yuewen, chairman of Creat Group, whose business spans petroleum equipment to equity investment, because it reaffirms that the nation is treating every kind of business on an equal footing.

"The law will surely draw more foreign businesses to China. As a private entrepreneur, I am more excited than concerned," said Zheng, who is also vice-president of the All-China Federation of Industry and Commerce.

He noted that innovations and technologies are always the result of competition, and being faced with a large number of competitors will drive a company to develop its core technologies to survive and win.

"Nevertheless, the market will become more globalized. This will also fuel more Chinese companies to go overseas to conduct business outside," Zheng said.

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