Proposed law to prompt innovation

Domestic firms to upgrade with more competition, resources

The proposed foreign investment law will compel Chinese companies to step up independent innovation and industrial upgrading, which will ultimately bolster their competitiveness in the global arena, according to economists and business leaders who spoke on the sidelines of the two sessions.

"We believe that the new planned foreign investment law can be an important, positive step for China," said John Litwack, World Bank lead economist for China.