Chinese Legal Reform: The Case of Foreign Investment Law

By Yan Wang | Go to book overview
Save to active project

9

Conclusion

There is no doubt that China has made tremendous achievements in its legal development in light of the pre-reform situation. At the same time, there exist theoretical and institutional limitations to China's legal reform, which are reflected in various problems encountered by foreign investors.

China's law can be better understood by taking into consideration various factors that have in one way or another underlined and shaped the contents of law and its function. Failure to consider these factors may lead to an unrealistic hope that the mere adoption of legal concepts can solve the problems encountered by foreign investors. In fact, as demonstrated in this book, the features and functions of newly established laws are bound to be characterized and conditioned by the existing social system.

China's law has been developing in a period of radical transition. The ongoing economic reform, the evolving ideology and shifts of policies have been reflected in the development of the Chinese legal system. Such reflection is also exemplified in China's foreign investment law which has been developing and evolving in the context of the debate as to the pace of the economic reform and the role foreign investment will play. The debate, no doubt, had an effect in the formulation of legal attitudes to foreign investment, which in turn fashioned legal techniques that were used to regulate foreign investment.

Debate as to how best to use and regulate foreign investment has been going on since the open door policy. The debate leads to an unresolved politico-economic dilemma towards using foreign investment - the need for foreign capital and technology and the concerns about its negative effects. Such a dilemma results in the dual objectives of foreign investment law. The law thus has an ambiguous nature and plays an ambiguous role in balancing control of foreign investment against facilitating the activities of foreign-invested enterprises. While establishing a set of control mechanisms to regulate foreign investment, China has also established a comprehensive range of incentive policies and a legal structure to protect such rights as management autonomy and contractual rights in order to attract foreign direct investment.

Legal measures to control foreign investment have been adopted by many countries, even by developed countries. In this politically and ideologically

-176-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
Chinese Legal Reform: The Case of Foreign Investment Law
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 255

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?