Chinese Legal Reform: The Case of Foreign Investment Law

By Yan Wang | Go to book overview

Notes

Introduction
1
W. Alford, “A Second Great Wall? - China's Post-Cultural Revolution Project of Legal Construction”, Cultural Dynamics, 1999, vol. 11, no. 2, pp. 193-214.
2
For detailed discussions, see Chapter 2.
3
See K. Silver, “Lessons Learned”, China Business Review, 1998, vol. 25, no. 3, pp. 20-27. For example, foreign investors continue to weather policy fluctuations and face uncertainties about Beijing's attitudes towards, and future legislation of, their activities in China. See also East Asian Executive Reports, China's 1997 Investment Climate: Reforms Constrained by Concerns about Inflation and Stability, 1997, vol. 19, no. 6, p. 10. Although China has more than 150 major laws and regulations that apply to foreign investment, its legal and regulatory system in this area generally lacks transparency, and enforcement is inconsistent, according to the 1997 report on China's investment climate by the US and Foreign Commercial Service in Beijing. Investors may also have to deal with excessive bureaucratic influence in joint venture operations. Some measures have been introduced to simplify procedures for foreign investors, but China's foreign investment laws and regulations still contain many ambiguities.
4
There are suggestions by some Chinese scholars that China should enact a systematic code governing FDI. See X. Lei, “Waishang touzi qiye lifa xitonghua chuyi” (On Systematic Legislation of Foreign-invested Enterprises), Economic Law, May 1992, pp. 87-90. Z. Xie and G. Lu, “Woguo ying zhiding waiguo touzifa”, (Our Country Should Enact “Law on Foreign Investment”), Economic Law, April 1992, pp. 87-90. Also see R. Xiao, “Shilun wanshan woguo waishang touzi lifa” (On Improving Foreign Investment Legislation in Our Country), Economic Law, March 1993, pp. 60-68.
5
The basic principle of national treatment is that foreign investors receive (under law, rules, regulations and administrative procedures) substantive treatment no less favorable than that accorded to domestic investors. Transnational Corporations, August 1994, vol. 3, no. 2, p. 12.
6
Cited in C. Tuck, “Is the Party Over? Political Instability in Post-Deng China”, Contemporary Review, May 1995, vol. 266, no. 1552, pp. 244-253.
7
P. Bergling, Legal Reform and Private Enterprise: The Vietnamese Experience, Umeå University, Sweden, 1999, p. 26.
8
With regard to Asia, it is represented notably by William Alford, Donald Clark, Anthony Dicks, Stanley Lubman, Pitman Potter, and Murray Scot Tanner. Dr Bergling indicated that “lay open your values and methodology” is preferred to unobtainable objectivity, reliability and validity. Also according to Per Bergling, Legal Reform and Private Enterprise, 1999, pp. 26-27:

-194-

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