Abstract
China has not enacted unified foreign direct investment code, and the legal system of foreign direct investment is composed of separate laws and numerous regulations and rules at both national and local level. The establishment of all foreign investment enterprises in China is subject to examination and approval of relevant authorities, only after which enterprises can be registered. The operation duration of equity joint ventures, contractual joint ventures and solely foreign-founded enterprises shall comply with relevant provisions of Chinese laws. The operation duration and disillusion of foreign-invested stock joint limited companies are subject to Chinese Company Law. The 2-track legislation model, under which foreign investment enterprises and domestic enterprises are governed by different laws and regulations, caused conflicts among different laws and difficulties in application of laws. To overcome the defaults China must enact unified law on foreign direct investment.
Highlights
Framework of Legal System of Foreign Investment EnterprisesVarious forms of foreign investment enterprises came into being in China right alone with the step of China’s opening-up and reform
China has not enacted unified foreign direct investment code, and the legal system of foreign direct investment is composed of separate laws and numerous regulations and rules at both national and local level
The operation duration of equity joint ventures, contractual joint ventures and solely foreign-founded enterprises shall comply with relevant provisions of Chinese laws
Summary
Various forms of foreign investment enterprises came into being in China right alone with the step of China’s opening-up and reform. In the beginning of opening-up and reform foreign investors invest mainly by establishing Chinese-foreign Equity Joint Ventures, Chinese-foreign Contractual Joint Ventures and solely foreign-founded enterprises. With development of the use of foreign capital, foreign investment forms gradually became diversified by some new forms like foreign-invested joint stock limited companies, BOT, and M&A etc. This part is mainly to elaborate the most important issues like the legal status, organization forms, establishment procedures, capital system, management structure and disillusion etc. Of Sino-foreign Equity Joint Ventures, Sino-foreign Contractual Joint Ventures, Solely Foreign-founded Enterprises and Foreign-invested Joint Stock Limited Companies This part is mainly to elaborate the most important issues like the legal status, organization forms, establishment procedures, capital system, management structure and disillusion etc. of Sino-foreign Equity Joint Ventures, Sino-foreign Contractual Joint Ventures, Solely Foreign-founded Enterprises and Foreign-invested Joint Stock Limited Companies
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