BEIJING -- China's newly approved foreign investment law reflects its welcoming approach to foreign investment and represents a crucial step as it moves towards further openness, senior executives of foreign enterprises have said.

The national legislature NPC passed the law at the closing meeting of its annual session on March 15.

It is a landmark legislation that will provide stronger protection and a better business environment for foreign investors.

The law, based on a system of pre-establishment national treatment plus a negative list, aims to improve the transparency of foreign investment policies and ensure that foreign-invested enterprises participate in market competition on an equal basis.

Shen Yuxin, partner at the international law firm Freshfields Bruckhaus Deringer, believed that the increased transparency and trustworthiness of China's investment environment that the law creates will provide a confidence boost for potential foreign investors.

Shen made the remarks in a recent written interview with Xinhuanet.

"Foreign-invested enterprises that were previously wary of China's investment environment will find themselves in a better position with broader market access, better protections of their intellectual property and technology and more efficient and convenient foreign investment services provided by the central and local governments," Shen added.

Similarly, Rachel Duan, senior vice president of U.S. engineering, manufacturing and power giant General Electric (GE), also spoke highly of the newly passed law, saying it is a substantial improvement, compared with the country's three current laws related to foreign investment.

Also in a written interview with Xinhuanet, she said that GE has participated in the discussion surrounding the preparation and drafting of the new foreign investment law in recent years.

Therefore, they are pleased to see that the legislation clearly stipulates that foreign enterprises will receive "pre-establishment national treatment," in addition to a "negative list" management system.

For example, foreign-invested companies will enjoy the same rights as Chinese companies to participate in activities such as drafting standards and bidding for government procurement projects in China, she mentioned.

These measures "are of great concern to foreign-invested enterprise," she said.

Saying that China has become GE's largest single-country market outside the U.S., she pinned high hope for the new foreign investment law.

"We hope that it can serve as a further boost of confidence in the Chinese economy for the international community, and promote more high-quality economic growth in the future," she said.

With unified provisions for the entry, promotion, protection and management of foreign investment, the law is scheduled to take effect on Jan. 1, 2020.