China is preparing to introduce legislation that will look to protect the interests of investors in the country’s defence sector.
The proposal to amend the ‘Law of the People’s Republic of China on National Defence’ is seen as a countermeasure to recent initiatives announced by the United States government to deter US firms from investing in Chinese companies linked to the country’s military.
China is amending national defence legislation to ‘safeguard the interests’ of investors in the sector. (Getty Images)
The State Council said in a statement that a draft revision of the national defence law was submitted to the continuing session in Beijing of the Standing Committee of the National People’s Congress for a second reading on 22 December.
Commenting on the newly proposed changes to the law, the official Xinhua news agency said it will safeguard the rights and interests of investors in the national defence sector.
Citing the draft legislation, Xinhua said it contained new measures that will “encourage and support eligible citizens and enterprises to invest in the national defence sector, protect the legitimate rights and interests of investors, and grant preferential policies in accordance with the law.”
The specific measures that will seek to protect these rights have not yet been detailed.
Other elements of the amended law will, according to Xinhua, “support the accelerated modernisation of the national defence sector and the military” and “strengthen the responsibilities of military agencies [and] clarify that these agencies should support relevant state agencies in carrying out national defence work and provide relevant facilities in accordance with the law”.