Enforcement In China Research Articles

Authoritarian but responsive:Local regulation of industrial energy efficiency inJiangsu,China

AbstractRegulatory behavior and effectiveness in authoritarian settings are subject to alternative characterizations. By tracing enforcement processes through a variety of case studies, this article proposes and refines a new model, at least with respect to energy efficiency regulations in China:authoritarian but responsive.Local rulemaking and operationalization is authoritarian, with strong and coordinative bodies of regulation, strategic plans, and active involvement of local authorities. Local authorities, however, often find themselves facing a welter of laws imposed on companies that create competing priorities for these local officials who then must struggle to find pragmatic solutions. On numerous occasions, such satisficing behavior by local officials makes them responsive to the performance and demands of regulated firms. Embedded in the decentralized authoritarian context, theauthoritarian but responsiveapproach is found to be a rational choice of local governments and different from previous conceptualizations. It helps local governments coordinate across a diverse array of regulatory issues. Drawing on environmental enforcement in China, the model provides consistent explanations for the seemingly changing and discretionary enforcement incidents.

Target Board’s Conduct and Shareholders Rights in the Context of Hostile Takeovers in China: A Case Study of Vanke v Baoneng.

Vanke, the biggest Chinese real estate developer, has recently become a target of an unsolicited takeover attempt by Baoneng Group. While the battle is still ongoing, practitioners and scholars from all over the world are in waiting on the further development of events. At the moment it seems rather unlikely that the acquisition will be completed. However, if successful, this takeover would be considered a milestone in the advancement of the market for corporate control in China. Thus, a thorough analysis of the Vanke’s takeover as a case study can provide a unique insight into the current state of hostile takeover regulations in China as well as the commercial and societal exigencies associated with the jurisdiction. Underpinning the paper are questions of whether the Chinese takeover regime permits the use of defensive mechanisms and what kind of tactics, if any, are allowed. This paper offers a range of possible responses that the target board can utilise in the face of hostile acquisition constrained by the law and other factors. By examining disclosed corporate documents, primary legal sources, regulatory responses and media coverage, the paper attempts to present not only the existing defences regulations, but also their enforcement in China. Since the battle is not yet finalised, it is difficult to draw definitive conclusions; nevertheless, an exploration of the issues that have arisen can help to understand how the takeover regime operates in the Chinese social, political and economic context. This paper offers a commercially contemporary addition to the M&A scholarship that brings light to the issue of hostile takeovers in China, which is of interest to both business and legal scholars and, more generally, to the global business community.

Interpersonal relations in China: Expatriates’ perspective on the development and use of guanxi

The literature on social networks identifies relationship building through guanxi as an effective way for Western organizations to reduce their liability of foreignness in China. Even though it is individuals rather than organizations who build these relationships, the focus in previous literature has been on organizational outcomes, and only a handful of studies have attempted to explain how expatriates perceive guanxi relations are built and maintained. To help address this issue, we conducted in-depth, semi-structured interviews with 36 Western expatriates working in China. Our findings suggest that guanxi is perceived to be an informal process that is used to build trust between individuals, which in turn can reduce the uncertainty around contract enforcement in China. We also find that the process for building guanxi between parties is initiated by the individual whose organization has less market power. Finally, the findings suggest that firms should be cautious if they elect to use agents as intermediaries to help connect to, and build relations with buyers and sellers.

Centralizing Trends and Pollution Law Enforcement in China

AbstractThis article analyses centralizing trends that may be able to reduce the negative influence of local protectionism on environmental law enforcement in China. The article finds that as centralizing trends unfolded, enforcement over time has become stricter and more frequent, however with only minor effects in reducing pollution. Moreover it finds a situation of uneven enforcement with richer and more urbanized areas having much stronger and more frequent enforcement than inland areas. Centralizing trends may thus have spurred stronger enforcement, but concurrently allowed for an uneven enforcement. At the same time, the article finds a continued local influence, keeping enforcement too weak to have much effect in reducing pollution and allowing for local interests to shape enforcement into unequal outcomes.

What Shapes Private Securities Enforcement in China? An Empirical Study of Chinese Securities False Statement Civil Compensation Cases

As the significance of private litigation in securities enforcement has become widely recognised, private litigation now serves as an imperative supplement to administrative and criminal sanctions for investor protection in different countries. Chinese securities litigation, featuring heavy dependence on public enforcement, has been criticised for the protection of local listed companies in these lawsuits. This study empirically verifies the issue of local protectionism in China’s securities litigation. The theory that local governments’ fiscal reliance on listed companies motivates courts’ protectionism is evidenced in this study. Local protectionism in China’s securities litigation is found to be severe in the least-developed areas, but economic underdevelopment is only a sufficient condition for local protection. Case studies suggest that personal rent seeking and corruption contribute to local protectionism in China’s securities litigation. The discussion also extends to the examination of the “piggy-back” effect of public enforcement, state ownership and other extra-judicial factors in China’s securities litigation.

Institutional interaction in traffic law enforcement in China: Resistance and obedience

AbstractOn-site law enforcement is routine work for Chinese traffic police to effectively control a congested city. Misunderstanding, confusion, and even conflict frequently occur between traffic police and offenders about traffic offence penalties. Based on an analysis of digital recordings, the present study investigates institutional interaction from a semiotic perspective. The institutional discourse, taken as a sign, creates an interpretant in the language of traffic police, which works as representamen to be interpreted by offenders. By examining the meaning construction in the interaction, the study reveals the way police impose penalties exploiting the impact of their linguistic, professional and social background. The findings indicate that the resistance or obedience to penalties is a reflection of the interpretant produced by the offenders in the process of mediation. As China has recently made great progress in the creation of rules of law, police organizations have established many new clauses, covering every aspect of police routine. However, the clauses relating to the use of legal language for police officers encountering offenders can, to some degree, result in different interpretations of the obscure language and conventional procedures, which can thus impede effective communication between two participants. Apart from the rigid limitation on and strict observance of legal language choices, the imbalanced distribution of legal knowledge between professionals and laymen, the complexity of identity construction and historical and social cultures may impose constraints on the institutional discourse. This study suggests that the police should be aware of institutional discourse as a semiotic process and should modify their linguistic strategy to effect positive interaction.

On the Current Situation of Basic-level Administrative Law Enforcement in China

With the development of economy and society, our country is on the road of rule by law, the legal system is progressing constantly. At the same time, we should also see that the administration according to law is not perfect, and its shortcomings exist in different degrees and need to be further improved. Based on the analysis of the status quo of grass-roots administrative law enforcement in China, this paper tries to put forward corresponding countermeasures, so as to promote the work of law-based administration for the corresponding study.

China's Marine Fishery and Global Ocean Governance

AbstractThis paper first examines two most significant structural shifts in China's marine fishery sector in the past decades, namely, expanding outward and going after high market value species. It then explains how domestic policies and development strategies have shaped the trajectory of China's marine fishery sector, and analyzes the obstacles rooted in both domestic socio‐political settings and global governance that have impeded policy reform and effective enforcement in China to ensure marine sustainability and international cooperation. Lastly, the paper explores possible options for transnational advocacy actors that are concerned with the global impact of China's growing fisheries.

Enhancing the Standards of Civil Damages Remedies to Fight Copyright Piracy in International Trade? A Commentary on the Proposed TRIPS-Plus Damages Reforms in the Third Amendment to the Copyright Law

The proposed third amendment to PRC copyright law endeavours to enhance the standards of damages to fight piracy more effectively via a TRIPS-Plus approach. This includes, inter alia, reframing statutory damages, introducing punitive damages, and new evidence rules granting the right of information to right holders. Nonetheless, the inconsistency of the extra-compensatory rationales of civil damage with the principle of restoration enshrined in the traditional Chinese copyright regime risks causing difficulties for the Chinese courts in implementing the new rules. The new provision on the right of information on pirated goods is a significant weapon to combat piracy that, conversely, risks causing tension between copyright enforcement and data protection, in addition to jeopardizing the defendants’ and third persons’ rights to privacy. This article argues that the proposed higher protection standards of copyright enforcement in China should not remain solely written law. The Chinese courts need to develop applicable conventions for calculating damages, based essentially on investigation using objective criteria of how much compensation ought to be payable, which is also the basis of calculating reasonable statutory damages. In this regard, this article advocates considering the merits and demerits of compatible enforcement provisions in the US and EU, and, meanwhile, developing a unified minimum standard for all courts in China via accepted and consistent judicial practice and through persistent dialogue and interaction with the academic community.

DNA barcoding of Mobulid Ray Gill Rakers for Implementing CITES on Elasmobranch in China.

The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) has been counted on for conserving threatened marine fish since it regulates the commercial international trade of these species. Implementation of the international treaty for Mantas included on CITES Appendix II is challenging due to insufficient information on species identification and markets management. To fill the gap in such aspects, we identified five species of Mobulid rays (Mobula spps. and Manta spp) by using COI and NADH2 mtDNA markers in dried ray gill rakers from Chinese markets, namely, Mobula japonica (representing 54.8% of the sample set), M. tarapacana (14.4%), M. kuhlii (13.3%), M. thurstoni (6.4%), along with Manta birostris (11.2%; CITES Appendix II). The utilization and conservation statuses of these species were discussed. Based on combination of DNA barcodes and key morphological characters, we developed a three-step process for identifying the gill rakers of Mobulid rays which has been adopted by frontline enforcement in China. We hope that our work can serve as a foundation and basis to reinforce objectives of international treaties, regulation of consumer-driven markets, regional cooperation, and national fishery management on endangered elasmobranchs in China as well as related countries.

Comparative Policing: A Brief Analysis of Casual Factors On Crime Rates and Law Enforcement in China, Mexico, and Russia

Understanding how laws are adjudicated on a local level can be just as signi$cant as understanding their origins. Crime rates and how they &uctuate relative to policing policies can reveal trends that can be traced back to social, economic, and cultural in&uences. When comparing China, Mexico, and Russia, we $nd that the similarities and dierences can enlighten criminal behavior by contrasting statistics with national identity. When taken into the context of political development, eective policing policy could be extrapolated and identi$ed. To Protect and Serve China, Mexico and Russia are constantly in the mainstream media, with evocative occurrences dominating contemporary discussion. In the United States, reports of police abuse $ll the news cycle consistently. Regardless of how one may feel about each report individually, it is an undeniable symptom

The independence of Chinese competition agencies and the impact on competition enforcement in China

Administrative enforcement of China’s Anti-Monopoly Law is shared among three ministries, and a pan-ministry commission sits above these ministries to coordinate competition policy. This two-tiered tripartite enforcement structure has been criticized as inefficient, costly, and ineffective. In particular, commentators are concerned that the agencies’ lack of independence will lead to the consideration of non-competition matters in competition enforcement. However, there has been minimal research done on how these institutional arrangements limit the independence of the Chinese competition agencies and whether and how this has actually impacted the enforcement of the Anti-Monopoly Law. This article addresses this gap by investigating whether a lack of independence has affected competition enforcement in China. By looking at the concept of agency independence, this article argues that, in addition to the constraints on independence that arise from the competition agencies’ positions as ministries within the executive branch, their independence is also limited by the conventions, coordination mechanisms, and relationships that exist within China’s socialist system. Applying this broader, multidimensional concept of independence to understand the enforcement experience of the AntiMonopoly Law, the article finds that the limitations placed on the independence of the competition agencies have shaped enforcement processes and outcomes.

An economic perspective of standards and FRAND enforcement in China

China has confronted issues surrounding fair, reasonable and non-discriminatory terms (FRAND) for standard essential patents (SEPs) and has become an important arena for FRAND-related antitrust enforcement and litigation. This article summarizes the key enforcement activities in China to date by the Chinese courts and three antitrust enforcement agencies with regard to FRAND issues. These activities indicate that China’s approach to analysing and enforcing FRAND terms has been under the framework of the abuse of dominance. Chinese authorities’ decisions to date appear to indicate the following logic when deciding the FRAND issues: SEP holders generally possess market dominance in licensing SEPs, and that disputes concerning SEPs licensing terms may be scrutinized for the risks of abuse of market dominance. This abuse may take the form of charging excessive rates, imposing unreasonable licensing terms, or both. They also reflect that Chinese authorities appear to place an emphasis on preserving FRAND commitments, regardless of whether they are requested by a standard setting organization or unilaterally made by an individual company.

The Recognition and Enforcement of the Foreign Arbitral Awards ‘with No Foreign Element’ in China

It is a hot topic in China in recent years among arbitration scholars and practitioners whether Chinese parties may submit their disputes with no foreign element to a foreign arbitral institution. The ruling made by the No. 2 Intermediate People's Court of Beijing on 20 January 2014 refusing the recognition and enforcement of an arbitration award made by the Korean Commercial Arbitration Board raised public concern over the issue again. This is the first arbitration award made by the Korean Commercial Arbitration Board denied recognition and enforcement in China and also the first foreign arbitration award denied recognition and enforcement in China on the basis of the fact that the Chinese parties submitted their dispute with no foreign element to a foreign arbitral institution, which will have significant implications for arbitration development in China.

How China's Crackdown on Corruption Has Led to Less Transparency in Its Enforcement of Its Anti-Bribery Laws

China’s recent crackdown on government corruption and commercial bribery by multinational companies is widely known. As part of this campaign against bribery, the Chinese government has promulgated a number of new laws against corruption and bribery as well as lengthy and binding interpretations of existing laws. The Chinese state-controlled media is also full of reports of convictions of corrupt officials and hefty fines imposed on greedy multinationals trying to bribe their way to business success in China. Although these developments may indicate an increase in transparency in the enforcement climate against corruption and commercial bribery, ironically the crackdown on corruption has led to less transparency in China’s enforcement of its anti-bribery laws. The reason is that as cases of government corruption and commercial bribery become more important and the stakes become higher, the Communist Party believes that it must take a more hands on approach to these cases by directing their outcomes from behind the scenes. Since the Party controls all government enforcement authorities and the courts, the Party is able to dictate the outcome of cases in secrecy. As these cases have grown in number and importance, the role of the Party has also grown adding to the political intrigue, bargaining between rival factions of the Party, and the settling of old scores playing out behind the scenes in these cases in secretive Party proceedings. Once the Party makes a decision, it will then direct a public entity, a government enforcement authority or a court, on how to dispose of the case. But the real reasons for the disposition of the case by the Party are never revealed to the public or to the parties leading to less transparency in the enforcement of China’s anti-bribery laws.

Regulatory Compliance when the Rule of Law Is Weak: Evidence from China’s Environmental Reform

English Abstract: What drives regulatees’ behaviors when the institution of law is weak? This study seeks to answer the question by examining environmental regulation enforcement in China. Based on survey and interview data on Hong Kong-owned manufacturing enterprises in the Pearl River Delta Region, Guangdong Province, we found that their decisions to adopt basic and proactive environmental management practices were less driven by concerns for legality than by their perceptions of the regulators’ actions and gestures. Enterprises adopted basic environmental practices to avoid potential punishment, and they adopted more proactive practices to avoid potentially arbitrary impositions from regulatory officials. Regulated enterprises were more likely to adopt both basic and proactive environmental practices if they had less difficulties understanding the enforced regulations. These findings suggest important ways in which regulatory compliance behaviors in a developmental context may differ from those in Western countries.Chinese Abstract: 在法律制度薄弱的情况下，什么因素影响着受监管者的行为？此项研究通过审视中国环境保护法规的执行来解答这一问题。对位于广东省珠江三角洲的港资企业进行的问卷和采访表明，企业在决定是否采取基本的或是能动的环境管理措施时，基于对监管者的行为和态度的判断，比出于遵守法律的考虑更为重要。为防受惩罚，企业采取了基本的环境管理措施；而当监管官员的管理具有不确定性时，企业采取了更能动的环境管理措施。当被执行的规则更易理解时，企业则更可能采取基本以及能动的环境管理措施。这些研究结果表明在发展中国家，合规行为与在西方发达国家存在重大区别。

Minimum Wages and Firm Employment: Evidence from China

This paper studies how minimum wage policies affect firm employment in China using a unique county level minimum wage data set matched to disaggregated firm survey data. We investigate both the effect of imposing a minimum wage, and the effect of the policies that tightened enforcement in 2004. We find that the average effect of minimum wage changes is modest and positive, and that there is a detectable effect after enforcement reform. Firms have heterogeneous responses to minimum wage changes which can be accounted for by differences in their wage levels and profit margins: firms with high wages or large profit margin increase employment, while those with low wages or small profit margin downsize. The increase in enforcement of China’s minimum wage in 2004 has since amplified this heterogeneity, which implies that labor regulation may reduce the monopsony rent of firms. Our results provide evidence for the theoretical predictions of the positive minimum wage-employment relationship in a monopolistic labor market.

Does Law Matter in China? An Empirical Study of a Limiting Case

Does law matter in China? According to previous studies, a Chinese law matters in the sense of having measurable effects if it serves vital state interests, is enforced by powerful agencies, and is clear and specific in its statutory language. From all the statutes enacted or amended since 1995, I find one that satisfies all these conditions — the Law on the Protection of Oil and Natural Gas Pipelines. Empirical analysis of the statute’s implementation, however, produces puzzling results. The statute serves core state interests. It is enforced by arguably the most powerful government agencies in China, and the statutory language is clear and specific. Yet, the enforcement of the law shows no impact on the safety of the oil pipelines. Solving this empirical puzzle requires a new theoretical perspective. Because of the weak judiciary and the fragmented state structure in China, legislation and subsequent implementation of a formal rule turns on the power distribution of the implicated parties. A statute therefore may be a mere codification of the status quo that reflects the existing power distribution: hence, the lack of measurable effects of the formal legal change. The findings of this study contribute to the literatures on lawmaking and law enforcement in China, and criminal law and punishment, especially the use of capital punishment.

Minimum Wages and Firm Employment: Evidence from China

This paper studies how minimum wage policies affect firm employment in China using a unique county level minimum wage data set matched to disaggregated firm survey data. We investigate both the effect of imposing a minimum wage, and the effect of the policies that tightened enforcement in 2004. We find that the average effect of minimum wage changes is modest and positive, and that there is a detectable effect after enforcement reform. Firms have heterogeneous responses to minimum wage changes which can be accounted for by differences in their wage levels and profit margins: firms with high wages or large profit margin increase employment, while those with low wages or small profit margin downsize. The increase in enforcement of China’s minimum wage in 2004 has since amplified this heterogeneity, which implies that labor regulation may reduce the monopsony rent of firms. Our results provide evidence for the theoretical predictions of the positive minimum wageemployment relationship in a monopolistic labor market.

Minimum Wages and Firm Employment: Evidence from China

This paper studies how minimum wage policies affect firm employment in China using a unique county level minimum wage data set matched to disaggregated firm survey data. We investigate both the effect of imposing a minimum wage, and the effect of the policies that tightened enforcement in 2004. We find that the average effect of minimum wage changes is modest and positive, and that there is a detectable effect after enforcement reform. Firms have heterogeneous responses to minimum wage changes which can be accounted for by differences in their wage levels and profit margins: firms with high wages or large profit margin increase employment, while those with low wages or small profit margin downsize. The increase in enforcement of China’s minimum wage in 2004 has since amplified this heterogeneity, which implies that labor regulation may reduce the monopsony rent of firms.Our results provide evidence for the theoretical predictions of the positive minimum wage-employment relationship in a monopolistic labor market.