On Their Best Behaviour: Foreign Plaintiffs in Chinese Administrative Litigation

Abstract

Supporters of the rights hypothesis argue that rule of law is a prerequisite for development while others cite East Asian examples to argue that appropriate institutions have allowed for growth without a strong legal system. Empirical studies have found evidence for both theories, but tend to be narrowly focused on the initial decision of when, where, and how much to invest. Based on 178 interviews and newly analyzed official data, this paper examines how foreign investors actually interact with the legal system of the world’s largest developing country, the People’s Republic of China. It finds that the presence of foreign investors and legal professionals has facilitated the creation of an impartial intellectual property tribunal in Beijing. Outside this tribunal, multinationals fail to make use of administrative courts, preferring extralegal special treatment that sometimes allows them to skirt inconvenient laws and limits their potential contribution to China’s rule of law.