A new China law to improve environment for FDI. The “Regulation on Implementing the Foreign Investment Law” approved by the State Council on December 12th. This new law specifies measures to facilitate & protect foreign investment, better address foreign investors’ concerns and promote opening-up at a higher level to-wit: the regulation requires equal treatment of domestic and foreign businesses regarding government funding, land supply & tax & fee cuts. Foreign companies are entitled to equal participation in the formulation and revision of national, industrial and local standards in accordance with the law. FIEs can make standards-related recommendations and undertake such work as setting standards. The law requires Chinese government/departments should NOT stop foreign companies from entering the market for government procurement or place them under discriminatory arrangements. The regulation pledges to strengthen foreign investment protection, and clearly stipulates that foreign investment will not be expropriated by the State. In special cases where expropriation is necessary for public interest, legal procedures and provisions should be followed, and compensation should be made based on market value. Good news!