BEIJING -- China's newly passed foreign investment law will benefit foreign investors and companies, and will help improve the Asian country's business environment, experts said.

The national legislature on Friday passed the foreign investment law at the closing meeting of its annual session. The law will become effective on Jan. 1, 2020.

Beijing will introduce a series of regulations and documents in accordance with the foreign investment law to better protect the legitimate rights and interests of foreign investors, Premier Li Keqiang told a press conference after the conclusion of the legislative session.

The new law clearly bodes well for foreign investors, especially in terms of market access and equal treatment, said Mario Ohoven, president of the German Association for Small and Medium-sized Businesses.

The law will help create much better conditions for foreign investors and help them plan long-term returns on investments in China, Ohoven told Xinhua.

"The new law promises more security for foreign companies investing in China," Ohoven said, while urging German companies to take advantage of the new opportunities for cooperating with Chinese partners.

Similarly, Sudheendra Kulkarni, an Indian expert on China, said the law should be welcomed by all since it shows Beijing's commitment to continuing with its policy of reform and opening-up with greater vigor.

At a time when protectionist sentiments are increasing, China's new law will reassure foreign investors, foster fair competition and create a transparent business environment for foreign firms, said Kulkarni, former chairman of Observer Research Foundation Mumbai, an Indian think tank.

China is making changes to strengthen foreign investment regulations, said Hans Hendrischke, a professor of Chinese business and management at the University of Sydney Business School.

Hendrischke said the Chinese government's approach shows that it has been listening to the concerns raised by business sector representatives, and is willing to introduce regulatory changes to improve the country's business environment.

"It's a very important piece of legislation that people have been waiting for for a long time because it will change the working environment for foreign investors in China -- and it will most likely have an impact on the way in which Chinese investors can work overseas," Hendrischke said.

"So economically speaking, business-wise, it's of global importance," Hendrischke added.