Abstract
Since the emergence of multinational corporations, the determination of their nationality has become an important issue in international law. China and the United States have adopted different systems for determining the nationality of a company. China merely use the jurisdiction of incorporation while the United States introduce control test to decide the nationality of a corporation. In face of a more complex economic environment, the jurisdiction of incorporation rule, though widely accepted worldwide, has its drawbacks, such as companies evading policy regulations, difficulties in determining their, and conflicts between different regulations. Thus, the jurisdiction of incorporation rule shall be developed into a new method that is based on the jurisdiction of incorporation and also consider the actual relationship between the corporation and the country.
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