USCBC received comments from 17 companies across industries including consumer products, ICT, pharmaceuticals, auto, and service firms. One member provided detailed tax comments related to the FIL, which will be included as a separate attachment.
General Comments:
- The implementing regulations should clearly define essential terms vaguely described in the FIL, including what constitutes a foreign investment and foreign investor, what the specific process is for filing and approving foreign investments, and what the specific responsibilities are for regulatory agencies at all levels.
- Existing regulations with language relevant but contradictory to the FIL should be revised or rescinded to ensure consistency with the requirements of the FIL, especially on priorities such as equal treatment in management, standards making, technology transfer requirements, capital outflows, et. al.
- Clarity is needed on the national security and information reporting systems, including details on the regulators and stakeholders, timelines, and review process. Implementing regulations should limit third-party influence, increase administrative efficiency by reducing industrial licensing requirements, and narrow the scope of national security review criteria by maintaining the balance between an open trade and foreign investment environment and national security concerns.
- The process of formulating specific implementing regulations should be transparent and open to foreign company comments. A feedback mechanism allowing for additional consultation after the January 1, 2020 implementation date would help to address challenges encountered during implementation in a unified and sustainable way.
