New draft law streamlines procedures for overseas companies and boosts corporate governance efforts, report Zhong Nan, Gao Yuan and Mu Chen.

The security clearance measures outlined in the draft foreign investment law will boost China's corporate governance efforts and create a level-playing field for overseas companies in the country, experts said on Tuesday.

Under the draft law, foreign investors will have to gain security clearance from the government for investments that are considered potentially harmful to China's national security.