Contract Law In China Research Articles

La internacionalización del derecho civil de contratos

"Globalization," "globality," "harmonization," and "integration" are concepts characteristic of the early 20th century that, in the legal sphere, have gained increasing relevance, especially in relation to Contract Law. But what do these notions mean in this context? And what effects are these phenomena generating?Internationalization, harmonization, and integration are reflected in legislation, particularly in the fact that the harmonization of private law has become a significant trend within the international community. In this regard, the international harmonization of contract law represents one of the most dynamic and productive fields of private law today.From the perspective of contract law development, instruments such as the UNIDROIT Principles of International Commercial Contracts and the United Nations Convention on Contracts for the International Sale of Goods are increasingly being adopted. These frameworks are used by parties in international transactions as governing law and are applied by arbitration institutions as general rules in global trade contexts.In this sense, both the Contract Law of China and the Contracts Section of the Chinese Civil Code are rooted in a solid practical experience derived from Chinese commercial transactions. At the same time, they incorporate legislative advances from foreign laws and adopt a broad international perspective. These legal instruments reflect distinctively Chinese characteristics while incorporating contemporary elements, positioning themselves as an example of civil law adapted to the era of globalization.

Environmental bonuses of employment protection: Evidence from labor contract law in China

Although it has been verified that employment protection can bring multiple impacts on firms, few studies have investigated whether and how employment protection affects firm emission decisions. Utilizing a dataset of Chinese industrial firms from 2002 to 2011 and the implementation of China's Labor Contract Law (LCL), we employed a difference-in-differences model to investigate the effect of the employment protection on firm's emissions behaviors. Our empirical results show that firms with higher labor intensity significantly reduce their SO2 emission intensity following the implementation of the law. This result withstood a series of robustness tests. We investigate three potential channels: pollutant treatment, energy use, and green innovation. The findings confirmed that firms can reduce the cost of employment protection by increasing their energy efficiency and the intensity of their clean energy inputs. Furthermore, the LCL's impact was notably pronounced in firms with foreign capital, and those characterized by higher profitability and productivity. Our study seems to confirm that firms do not shift their financial pressure by increasing their emissions behavior, instead, employment protection produces environmental bonuses.

A Comparative Study of the Chinese Change of Circumstances and the UK Contract Frustration

This study mainly focuses on the comparative study of the "change of circumstances system" in the contract law of China and the UK. This system is described differently in Chinese and English law. Chinese contract law describes it as "change of circumstances", and English contract law describes it as "contract frustration". Although there are differences in legal descriptions, the connotation and purpose of the two systems are generally similar. Generally speaking, it refers to the occurrence of unforeseen circumstances between the two parties after the conclusion of the contract, which leads to fundamental changes in the basis of performance. If the performance is illegal or fundamentally deviates from the main purpose of the contract, the status of the contract shall be changed or terminated. The purpose of the system is to maintain the fairness of the contract parties, reduce the risk of the contract parties, and promote the stability of the trading market. Some differences have emerged in the judicial practice and legislative expression of the system in the two countries. This study believes that the main reasons are the large differences in the business environment and the theoretical basis of the system between the two countries. Therefore, this study will first compare the theoretical basis of the change of circumstances system in the two countries, and then specifically compare the legislative expression and judicial practice of the system in China and the UK, and analyse the reasons for the difference. It should be stated that this comparative study aims to analyse the differences and find out the reasons for the differences and does not involve the evaluation of the advantages and disadvantages of the system.

Strengthening worker benefits or destroying jobs: Effect of the 2008 Labor Contract Law in China

This study examines the effect of strict enforcement of the 2008 Labor Contract Law (LCL) on firm employment in China. Although the LCL caused a substantial increase in labor cost, there are no negative repercussions on employment. By contrast, surviving firms continue to increase employment driven by the strong labor demand of the fast-growing Chinese economy. However, compared with non-exposed firms, exposed firms suffered negative repercussions on employment after the enforcement of LCL. Exposed firms exhibited reduced wages after the LCL relative to non-exposed firms, suggesting that wage has a mediation effect on reducing the insurance expenditures of both employers and employees; they also raised productivity considerably after the LCL to absorb the incremental labor costs and survive in the market. However, there are heterogeneous effects of wage and productivity among firms of various ownerships and exporting behaviors.

Labor cost, government intervention, and corporate innovation: Evidence from China

We examine the inducement effect of labor cost on corporate innovation in emerging markets. To establish causality, we adopt a difference-in-differences approach, based on the variations generated by the passage of the new Labor Contract Law in China, as well as an instrumental variable approach. We find the inducement effect of labor cost is more pronounced for Chinese non-state-owned enterprises, firms without political connections, and firms with low labor productivity. Our results support the induced innovation hypothesis in that increases in wages will induce invention and technology adoption, but also suggest that government intervention through state ownership and political connections largely decreases this inducement effect. Our findings have implications for emerging markets regarding the transition from a low-cost labor development model to an innovation-driven growth model.

Excess employment, media coverage and corporate valuation: Labour Contract Law in China

Previous research has found that firms’ excess employment will reduce corporate valuation as well as lead to a series of negative economic consequences. However, these studies cannot explain why the excess employment would lead to a series of negative economic consequences. Using the exogenous event of the promulgation of the new Labour Contract Law (‘the Act’) enacted in 2007 in China, this paper finds that an increase in excess employment will reduce the valuation of firms. With the promulgation and implementation of the Labour Contract Law, the negative correlation between excess employment and corporate valuation is significantly strengthened, which shows that excess employment has a more serious negative economic impact after the law is implemented. It has been shown elsewhere that labour costs have increased since the implementation of the Act. This paper reveals that the mechanism relating excess employment to negative economic consequences is that excess employment leads to increasing labour costs rather than reducing enterprise productivity. Furthermore, we present evidence that media coverage significantly reduces the negative correlation between excess employment and the valuation of the firm, which extends the information intermediary theory of media.

중국 계약법상의 채권양도

중국 계약법상의 채권양도

A Feature Study on the Liability of Contract Law in China

A Feature Study on the Liability of Contract Law in China

Assessing treaty performance in China: trade and human rights

Preface Introduction 1 Encounters with International Trade Standards: China and the WTO 2 Performance of International Trade Standards I: Contract Law in China 3 Performance of International Trade Standards II: Property Law in China 4 Encounters with International Human Rights Standards 5 Treaty Performance on Human Rights: Sustainability and Social Justice Conclusion Appendices Notes Index

A Study on the main contents and the characteristic factor in Contract Law of China

A Study on the main contents and the characteristic factor in Contract Law of China

A Study for Breach of Contract in the Contract Law of China

A Study for Breach of Contract in the Contract Law of China

China – The new Chinese contract law: a brief introduction

Overview of the first unified contract law in China, formulated on the basis of Chinese experience with reference to relevant international models. Published in the Letter from … section of Amicus Curiae - Journal of the Institute of Advanced Legal Studies and its Society for Advanced Legal Studies. The Journal is produced by the Society for Advanced Legal Studies at the Institute of Advanced Legal Studies, University of London.

China’s Labour Contract Law and Labour Costs of Production

The promulgation of the Labour Contract Law in China has aroused heated debate about the financial burden of the new labour costs for firms. However, based on a data set collected in Guangdong Province in southern China, the empirical findings suggest that, on average, the increase in labour costs per capita in the sample firms due to the effects of the law ranges between 2.54 percent and 4.90 percent, which seems to be economically insignificant.

The Doctrine of Change of Circumstances in Chinese Contract Law

Under the doctrine of change of circumstances, the disadvantaged party may request for renegotiation of the contract and/or petition to the courts for relief where a change taken place subsequent to the formation of the contract has rendered the contractual obligation so excessively onerous. In China, there had been doubts over whether such doctrine existed or not, as nothing about it was mentioned in the Contract Law of China enacted in 1999. However, following the issuance by the Supreme People’s Court of the second judicial interpretation concerning the application of the Contract Law of China on 24 April 2009, the doctrine of change of circumstances is formally recognized. This article aims to examine the development and the essential elements of the doctrine in Chinese contract law. In addition, the conceptual differences between change of circumstances and force majeure will be discussed.

China's Legal Response to the Global Financial Crisis: Increasing Certainty in Contractual Disputes to Boost Market Confidence

The recent global financial crisis has compelled China to make significant changes to its legal system, not least in the area of contract law. In 2009, China's Supreme People's Court issued a Judicial Interpretation and Guiding Opinion modifying the uniform contract law passed in 1999. These deal with issues such as the validity, performance and breach of contracts, and were issued in direct response to the economic downturn. This article focuses on the modifications the new Interpretation and Opinion have made to the governance of contractual relations in China, as well as considering what their impact will be for businesses operating in China. By addressing these issues, this article offers a clear overview of the current state of contract law in China and considers whether there will now be more certainty in the outcome of contractual disputes as a result of the recent changes and a consequent rise in market confidence.

The Impact of the Recently Issued Judicial Interpretation of China’s Contract Law 1999: Creating Certainty for All?

China passed a uniform contract law ten years ago in 1999, recognising the central importance of contract law for a market economy to operate effectively, as contracts lie at the heart of all business transactions. However, both the economy and legal system in China have undergone significant changes over the past decade and as a result the Supreme People’s Court issued a new judicial interpretation of the Contract Law on May 13th 2009 which aims to clarify the 1999 law. This judicial interpretation deals with crucial issues such as the validity, performance and breach of contracts and will arguably lead to increased certainty in the trading environment as enterprises can feel more secure of the outcome of any potential contract dispute. Therefore, this paper will focus on these key questions: to what extent does the new interpretation modify or improve the existing law? To what extent does the new interpretation reflect a changing commercial climate in China as the economy continues to react to the global downturn? What will the impact be for businesses operating in China? By addressing these issues, this paper will offer a clear overview of the current state of contract law in China and how businesses can use the law most effectively.

Liabilities in Contract Law of China: Their Mechanism and Points in Dispute

China is drafting its first Civil Code now, and the Chinese laws have seen an expansion of contractual obligations and a new structure of contractual liabilities. This paper expounds this trend through the perspective of contract liabilities. It mainly analyses the anticipatory breach, the enforced performance, damages, payments stipulated by the contract, the statutory rights to termination, the unification of guarantee liabilities for defects and liabilities for breach of contract, and makes the conclusion that China Contract Law CCL will be put into the future Chinese Civil Code, with some necessary technical changes and amendments.

The Economic Contract Law of China: Legitimation and Contract Autonomy in the PRC.

The Economic Contract Law of China: Legitimation and Contract Autonomy in the PRC.

The evolution of contract law in China: Comparisons with the west and the Soviet Union

The evolution of contract law in China: Comparisons with the west and the Soviet Union

The Economic Contract Law Is a Powerful Tool in Ensuring Implementation of the State Plan

The Economic Contract Law in China was enacted by the fourth session of the Fifth National People's Congress in December last year and shall come into effect on July 1 this year. This is a major event in our economic life and the establishment of a legal system. The Economic Contract Law sets forth in the main the range of its application; the principle and form in signing an economic contract; the execution, revision, and invalidation of the contract; the responsibilities for breach of contract; mediation and arbitration of contract disputes; and the general principles regarding the administration of economic contracts. The Economic Contract Law also makes specific provisions regarding the signing, fulfillment, and responsibilities of nonfulfillment of ten economic contracts such as purchase and sale and contracting of construction projects. The promulgation and enforcement of the Economic Contract Law make it possible for us to have rules and regualtions to follow when dealing with matters concerning ec...