Chinese Premier promises level playing field for domestic and foreign investors

China will gradually relax and even scrap foreign-owned equity limits in some sectors, Chinese Premier Li Keqiang said today, promising a level playing field for domestic and foreign investors in the world's second largest economy.

The Chinese economy is so integrated into the global economy that closing the doors would only block China's own way, he said, after the conclusion of the annual legislative session.

Li, 62, was re-elected last Sunday for a second five-year tenure by China's rubber-stamp parliament.

While addressing media at the end of the legislative session, Li said China will open up to the rest of the world.

"We aim to make the vast Chinese market a fair place for both domestic and overseas firms with all kinds of ownerships to compete to offer more options for about 1.3 billion Chinese consumers, expediting upgrading of Chinese products and services," Li said.

China's opening-up is a gradual process and should be perceived in a long-term and holistic view, as some seemingly minor reform steps might produce impressive dividends later, citing China's booming overseas tourism market thanks to streamlined private visa application procedures.

"Like rowing a boat, opening up is a two-way movement entailing mutual efforts," Li added.

Li said China still has much room for further opening up its market and will lower overall tariffs on imports. Tariffs on popular consumer goods, including drugs, will be slashed, while the much-needed anti-cancer drugs might phase in zero tariffs.

Despite a deficit in service trade, China will increase efforts in relaxing control over the market access to the service sector, including old-age care, medical care, education and financial services, according to him.

China will gradually relax and even scrap foreign-owned equity limits in some sectors and shorten the negative list for foreign investment, Li added.

No compulsory technology transfers will be imposed on foreign investment in the general manufacturing sector and intellectual property rights will be protected, he said.

He also promised to further improve business environment.

China will continue to streamline administrations and delegate power to improve business environment and further stimulate market vitality, Li said.

"We will cut the time it takes for opening a business in China by another half and we will reduce the time required for reviewing a project application by another half," he promised.

Measures will also be taken to have an e-platform in a national level for accessing government services online and ensure any requirement for certification that has no basis in laws and regulations will be abolished, he said.

"We must further cut the red tape and simplify administrative procedures," he said.