Will Foreign-Related Rule of Law Save China’s Economy?

China wants the global community to think new laws will protect their companies—but is that the real reason behind the new legal approach?

A Chinese military policeman stands guard in front of the U.S. Embassy in Beijing as he and others stand guard around the compound in Beijing on April 3, 2001. Stephen Shaver/AFP via Getty Images

Commentary

The timing of China’s recent changes in laws governing foreign companies operating within its borders couldn’t be better—at least for China. The Foreign-Related Rule of Law is one of the more recent adaptations the Chinese Communist Party (CCP) has made in its efforts to maintain and attract foreign investment and manufacturing.

A Major Concession to the Global Business Community?

On the face of it, it appears to be a major step or concession to the international business community, and in some ways, it is. CCP leader Xi Jinping views the new foreign-related rule of law as a critical part of China’s plan to further integrate into the global economy. As a result, China’s legal establishment, including the Supreme People’s Court, is leaning toward new laws.