European businesses said Monday they fear a Chinese foreign investment law allegedly fast-tracked by Beijing to meet Washington's demands on trade has inadequate protections against forced technology transfers.
The law will eliminate the requirement for foreign enterprises to transfer proprietary technology to Chinese joint-venture partners.
It also includes other steps to level the business playing field that Western trading partners have long demanded.
But China's parliament is expected to vote on the legislation in March - barely two months after debating a first draft - and the EU Chamber of Commerce in China said it was being fast-tracked, restricting time for foreign businesses to raise objections. "We are concerned that the drafting of the Foreign Investment Law is being squeezed between the normal legislative process and the negotiation table with the US, in part to address the trade conflict," said Mats Harborn, president of the European Union Chamber of Commerce in China.
Foreign firms worry the draft glosses over details and that vague language leaves room for broad interpretation.
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