With China's accelerated economic reforms and accession to the World Trade Organization (WTO), foreign investors are finding it increasingly necessary to understand the regulatory environment of this potentially huge market. To provide handy reference, this book is an introduction to the legal framework of doing business in China. The intended readers are law students, business students, students majoring in Chinese studies, lawyers practicing international transactions, and management consultants.
This book is organized from the general to the specific. It commences with an overview of China's current legal system. Chapters 2 and 3 examine the legal framework of business entities in China, including both domestic and foreign investment enterprises. Chapters 4 to 9 cover substantive areas of law on business operations, including contracts, intellectual property, labor and employment, consumer protection, taxation, banking, securities, and dispute resolution. The closing chapters, Chapter 10 and 11, discuss China's WTO commitments and policies on the development of its western region and highlight new business opportunities for foreign investors. In its entirety, this book provides readers with a basic understanding of the pertinent issues on foreign direct investment in China. However, the material on each topic can also stand on its own, and the basic knowledge of a specific area of law may be obtained by focusing on the relevant chapter.
Since China has carried out legal reforms for fewer than three decades, its regulatory environment is relatively dynamic because new laws and regulations are frequently enacted while existing ones are often amended or repealed. Moreover, China is a large country with diverse physical, economic, and social circumstances. Accordingly, the Chinese central government enacts laws, regulations, and rules that are applicable nationwide, whereas local authorities implement them by enacting local regulations, or when there are no national laws or regulations dealing with certain issues, enact local regulations to address important concerns. Taking page limit and manageability into consideration, this book discusses mainly laws, administrative regulations, and government rules that have general applicability. When foreign investors make business decisions, they must also consult local regulations and industry-specific laws or regulations.