"When China first opened its market in the late 1970s, foreign investors hesitated to enter the China market at that time as they were reasonably concerned about whether their investments would be safe in China. The three laws gave foreign investors a certain degree of confidence that Chinese authorities would regulate foreign-invested enterprises pursuant to the law and, as clearly provided in the three laws, the legal rights and interests of foreign investors in China would be protected accordingly," Tang said.

China is the world's second-largest recipient of foreign direct investment. Non-financial foreign direct investment rose 5.25 percent year-on-year to $117 billion in 2013, according to the Ministry of Commerce.

Three fundamental laws governing foreign investment:

The Law on Sino-Foreign Equity Joint Ventures was adopted on July 1, 1979. It was first amended in April 1990 and again in March 15, 2001.

Law on Foreign-Capital Enterprises was enacted on April 12, 1986, and amended in October 2000.

Law on Sino-Foreign Cooperative Joint Ventures was adopted on April 13, 1988, and amended in October 2000.

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