Foreign Companies In China Research Articles

Current Status and Deficiencies of China's Anti-takeover Laws

From reform and opening up to the current "One Belt, One Road" policy, more and more countries have started trading with China. Transactions between multinational and Chinese companies are becoming more frequent and complex, it is particularly important to control the business practices of large foreign companies in China and prevent hostile takeovers, given the coexistence of crises and interests. Anti-takeover measures and anti-takeover laws are now the main effective means of dealing with hostile takeovers worldwide. Currently, for China, which is in the process of telling development, it is very necessary to formulate anti-takeover laws and regulations in the context of frequent and complex eco-nomic activities. This article focuses on the existing domestic anti-takeover laws and regulations using the method of legal regulation analysis. It was found that the main rea-son for this is that China is at an early stage of development and has not given much attention to anti-takeover issues in the early stages. In light of this, China must add clear legal provisions to regulate anti-takeover, focus on the comprehensive combination of anti-takeover measures and anti-takeover laws, and establish relevant regulatory bodies to address the problems caused by existing legal loopholes.

What is the Current Formal Legal Environment for Foreign Companies in China in the Light of the Phase 1 Trade Agreement? Intellectual Property Rights (IPRs) Protections for Foreign Direct Investment (FDI) in Mainland China

This thesis employs doctrinal legal analysis method by using laws, regulations and legal theories, to evaluate the current protections of intellectual property rights for foreign investors in mainland China. In this thesis, it compares the current Chinese laws and regulations on intellectual property protections with its international Fair and Equitable Treatment principles, previous laws, and Phase 1 Trade Agreement. It concludes that Phase 1 Trade Agreement has been implemented mostly in the current Chinese laws, which also have been improved fundamentally to protect foreign investors’ interests and rights. However, given the backgrounds on rule of law in China, this thesis also recognises the formations of Chinese laws are different from those perceived by the Western societies. Therefore, even China has strive to cohere the standards of international investment law, its laws are still relatively lacking of preciseness and predicability, clarity and effective enforcement.

What is the Current Formal Legal Environment for Foreign Companies in China in the Light of the Phase 1 Trade Agreement?

What is the Current Formal Legal Environment for Foreign Companies in China in the Light of the Phase 1 Trade Agreement?

Challenges for foreign companies in China: implications for research and practice

As a large country with great development potential, China has been one of the most popular foreign direct investment destinations. However, foreign companies increasingly face a variety of challenges especially during the “soft-landing” of the Chinese economy and amidst anti-globalization tendency. Based on a comprehensive review of the extant literature, we provide a critical overview of some of the key challenges for foreign companies in China, focusing on two challenges related to the business environment, namely regulatory and cultural challenges, and two management challenges, namely innovation and human resource management. We provide managerial implications and outline directions for future research.

Institutions as Constraints and Enablers: Changes in Human Resource Management Practices of Foreign Companies during Economic Reform in China

This article demonstrates how the development of labour market institutions alongside economic reform has impacted the human resource management (HRM) practices of foreign companies in China. A historical approach is applied to examine the transformation of China from a centrally planned labour administration system to a market-based labour institution. The HRM practices of foreign companies are seen being embedded in China's macro-institutional environment, which constrains and/or enables foreign companies to exercise people management. Drawing on previous research, the study shows that HRM practices in the early reform period were primarily constrained both by formal and by informal institutions. The evidence from Finnish companies operating in China shows that HRM practices in the late reform period are largely enabled by formal institutions; however, foreign companies face the need for adaptation to the demands of informal institutions. Furthermore, the scarcity of human resources and rapid yet heterogeneous socio-economic development pose additional challenges for people management in China today.

New Zealand Taxpayer Not Entitled to Foreign Tax Credit for Tax Sparing Granted to Controlled Foreign Company

This note summarizes the New Zealand Court of Appeal’s decision in Commissioner of Inland Revenue v. Lin, which overturned the High Court’s 2017 ruling that a New Zealand-resident taxpayer with relevant interests in certain controlled foreign companies in China was entitled to a foreign tax credit for both tax paid in China by the controlled foreign companies and to tax spared in China arising from tax concessions granted to those companies.

New Zealand Taxpayer Entitled to Foreign Tax Credit for Tax Sparing Granted to Controlled Foreign Company

This note summarizes the New Zealand High Court decision in Lin v. Commissioner of Inland Revenue, which entitled a New Zealand-resident taxpayer with relevant interests in certain controlled foreign companies in China to a foreign tax credit for both tax paid in China by the controlled foreign companies and to tax spared in China arising from tax concessions granted to those companies.

Local Embeddedness, Market Focus, and Productivity: Evidence of Taiwanese Manufacturing MNE Subsidiaries in China

AbstractThere has been considerable literature discussing the characteristics and importance of location‐specific factors in the context of Foreign Direct Investment (FDI), but very little literature linking location‐specific factors to productivity. This study explores, for each location‐specific factor, the relationship between the degree of local embeddedness and the labor productivity. We contribute to the body of literature on location‐specific factors by arguing that market focuses play a pivotal role in determining the impact of local embeddedness on productivity. Based on their strategic choices, we categorize Taiwanese manufacturing multinational enterprise (MNE) subsidiaries in China into two groups: the local‐market‐focus group and the export‐market‐focus group. The paper fits the Ordinary Least Squares (OLS) regression models to the export‐market‐focus group and the local‐market‐focus group separately. For these two groups, each local‐embeddedness variable exerts different effect on labor productivity. Results also suggest that local‐market‐focus FDI is more affected by the host country's local business environment than is export‐market‐focus FDI. Although this study cannot represent all foreign companies in China, its dynamism offers a rich context in which to explore a deeper understanding of foreign companies' business activities in China.

Tricky business: Swiss perceptions of informal imperialism in China in the 1920s

This article analyzes the role that commercial interests played in Swiss perceptions of informal imperialism in China during the 1920s. Commercial interests were the driving force behind the establishment of Swiss relations with China in 1918 and Swiss rejections of Chinese demands to abolish extraterritoriality in the 1920s. Swiss commercial relations with China were deeply rooted in the social, economic, and political institutions and processes developed by informal imperialism in China. During the Chinese antiforeign agitation in the 1920s, the Swiss press criticized the unequal treaties as an example of imperialism in China but ignored Switzerland’s participation in it. This discrepancy between the official and media perceptions of Swiss commercial interests in China was caused by the fact that Switzerland’s dependence on privileges connected to the unequal treaties clashed with Swiss national mythology, which was based on neutrality and anti-imperial narratives. Moreover, the negligible importance attributed to Swiss trade with China and the increasing focus on the nationality of foreign companies in China allowed the Swiss media to ignore Swiss commercial interests in China. As a result, Swiss complicity in informal imperialism was downplayed by the Swiss press, which ignored the importance of Swiss commerce to Sino–Swiss relations.

Fracture Stimulation in the First Joint-Appraisal Shale-Gas Project in China

This article, written by JPT Technology Editor Chris Carpenter, contains highlights of paper IPTC 16762, ’Successful Fracture Stimulation in the First Joint-Appraisal Shale-Gas Project in China,’ by Liang Jin, Changlong Zhu, Yong Ouyang, Ming Zhou, Qingguang Qu, Fei Li, Roger Yuan, Chris Wu, Zhiyi Zhang, Yan Wang, and Fa Dwan, Shell China Exploration & Production; Sanjay Vitthal, Shell Canada; and Shiqian Wang, PetroChina Southwest, prepared for the 2013 International Petroleum Technology Conference, Beijing, 26-28 March. The paper has not been peer reviewed. This paper discusses fracture stimulation in the first joint-venture shale-gas project with foreign companies in China. The block is in Sichuan province, and the target zone is Longmaxi hot shale, a Silurian formation. Its matrix permeability is extremely low (100 to 300 nanodarcies), but it is rich in natural fractures. Hydraulic fracturing has been shown to be critical to enhancing production. A collaborative approach was applied to the completion of the shale gas wells during appraisal. Introduction Most of China’s proved shale-gas resources are in the Sichuan, Tarim, and Ordos basins. China’s technically recoverable shale-gas resources are estimated at 1,275 Tcf. The operator jointly appraised a shale-gas block in Sichuan with PetroChina. The project team needed to make several determinations in the early phase of the project, such as whether there is sufficient gas in the shale formation and whether the gas can be extracted at a high-enough (commercial) rate. From the production technologists’ perspective, the technical objectives of the early wells included the following: Test the ability of the Longmaxi hot-shale interval to be fractured under high formation pressure. Establish baseline fracture designs for the Longmaxi hotshale interval, at greater than 3500-m true vertical depth (TVD), and systematically evaluate the design parameters. Establish an effective multidisciplinary workflow. Gather fracture-stimulation-performance data and subsurface-pressure information. Determine the productivity of the gas from the appraisal wells to prove the presence of a shale-gas play. The joint-appraisal phase began in November 2010. While planning the drilling of deep wells to evaluate the Longmaxi formation, data were obtained from several shallow wells at a location close to the surface. Extensive laboratory tests were conducted to evaluate the geochemical properties of the rock. In addition, some rock-mechanics properties were measured. The drilling of the first well (Well A) began in December 2010, and hydraulic fracturing began once the well reached designed depth. To date, five wells have been drilled; two are vertical, and three are horizontal.

The many faces of suzhi in the Chinese organization and society

Purpose – The purpose of this paper was to explore the Chinese concept of suzhi and how it relates to behavioral standards within mainland Chinese society and the workplace. The article provides a general discussion of suzhi and its inherent elements to act as a foundation for the education of expatriate managers and executives and for future research by Chinese human resource management (HRM) scholars. Design/methodology/approach – This paper draws on the author's first-hand experience and observations from five years of living and working abroad in mainland China with Chinese companies and executives. Findings – The concept of suzhi in China is a reflection of multiple behavioral standards throughout China. And while suzhi's roots are in ancient Chinese culture and Confucianism, it is also subject to influence and change. Practical implications – The paper may serve as a foundation both for expatriate managers seeking to improve HRM practices in foreign companies in China and future scholars who wish to conduct further research on suzhi and Chinese behavioral standards as they can be applied to the workplace. Originality/value – This is an attempt to enlighten expatriate managers and executives in China on the concept of suzhi and its implication for HRM in China.

Legal account auditing in the corporate system of Chinese listed companies relevance and implications

In recent years, the People’s Republic of China has enjoyed strong growth that has attracted the attention of the whole world. In particular, the event that marked a significant development of the Chinese economy has been the entry into the WTO in 2001. This has triggered the opening of China to foreign investment and the gradual liberalization of foreign companies in the Chinese domestic market. The presence of foreign investors and foreign companies in China has increased the demand for higher quality in the standard of auditing and an acceleration of the process of international convergence. To this end, China over the years has continued its project of alignment with the international rules and in 2008 published the new CSA (Chinese Standards on Auditing) and in 2010 in accordance with the principle of global and continues convergence the CASB (China auditing Standards Board) has completed its review of the CSA achieving full convergence with the Clarified ISAs. The aim of this research is to investigate the current scenario of the system of statutory audit in the People’s Republic of China, the degree of development of auditing system highlighting the differences and peculiarities of the audit through an empirical analysis that involved the companies composing the index CSI 300 the 300 most highly capitalized companies, 95 of which are listed on the Shenzhen Stock Exchange and 205 on the Shanghai Stock Exchange. The analysis showed that there is a strong presence of local auditing firms, almost half of the companies listed on the CSI 300 are audited by domestic firms. With regard to the presence of foreign companies, it was found that foreign companies not belonging to the big four are the most representative. In fact only 76 companies are audited by the Big Four.

Locational Preferences and Network of Foreign Companies in China

Locational Preferences and Network of Foreign Companies in China

The Cross-Culture Challenges in Marketing Relationship Creation . Understanding Chinese Guanxi, Renqing, Lian, Mianzi, Xinyong, and Xinren from the Direct Experiences of Polish Managers (Beyond Hofstede’s Approach)

Close relationships with all members of the market environment are now widely accepted by academics and practitioners as an excellent way of creating a sustainable, competitive advantage. However, views on exactly which activities constitute the essence of market relationships may differ significantly in various cultural contexts. The purpose of this paper is to explore the impact of Chinese culture on market relationship creation, focusing on specific guanxi networks with closely related indigenous cultural aspects, such as renqing, lian, mianzi, xinren and xinyong, in order to reveal their implications for the functioning of foreign companies in China. An emic approach was predominantly implemented in this analysis, in addition to a polemic on the commonly used assessment methods of culture impact that is based on Western evaluation and bipolar culture dimensions. The information presented is based on research carried out on thirty-eight cases of Polish companies in China that used a semi-structured interview technique with individual managers directly responsible for operations in this market. It is reinforced with a broad literature overview and many years of the author’s direct observations. In addition, some practical recommendations and further research are suggested.

Establishing trade unions within foreign companies in China

PurposeThis article aims to study unionisation of foreign companies in China and to evaluate its effectiveness on representing labour rights and interests, so as to explore the relationships between the Chinese unions and other industrial relations actors.Design/methodology/approachThe article is based on in‐depth interview of key stakeholders from national, regional and company trade unions, as well as company management personnel. An archive study of union and company files is also conducted.FindingsThe Chinese trade union has realised that its interests stem from both the increase of membership dues and expansion of the membership base. Unionisation in transnational corporations (TNCs) is a key approach to achieve the interests of the union, which conducts grassroots mobilisation to counteract non‐operative companies but turns a blind eye on labour interest violations in collaborative firms. From the aspect of the union, the effectiveness of unionisation depends on raising its power leverage by affording fewer duties for the workers. Labour rights and workers' demands are not the structural concern of unionisation in TNCs.Originality/valueThe article challenges the research framework about Chinese unionism, which mainly emphasises a state‐union relationship or draws a corporatism perspective. The article concludes that the power relationship between the union and firm has acted as the key theme of the power struggle among industrial relations actors of China.

Competitiveness development of Chinese manufacturing enterprises in global context for crisis management

This paper connects previous research in global competitiveness analysis, taking the impact of global financial crisis into account, to evaluate how manufacturing companies are able to manage crisis by adjusting their manufacturing strategy and transformational leadership together with technology level to improve operational competitiveness performance. It develops a theoretical approach of integrating the core factors which influence the operational competitiveness performance, i.e. manufacturing strategy, and transformational leadership with technology level, into conceptual analytical models to evaluate overall competitiveness. The empirical studies are focused to case companies in the most dynamic market – China, especially large- and medium-sized manufacturing enterprises, and compare their operational performances in global context. The overall competitiveness of multiple cases are studied using the proposed analytical models to conclude the experience of crisis management, which can become a model for crisis management studies of companies globally as well as foreign companies in China.

Management of corporate culture through local managers' training in foreign companies in China: a qualitative analysis

Corporate culture is a complex phenomenon in foreign companies located in the People's Republic of China. For the management team of an international enterprise, it is a challenging task to manage cultural differences. Education and training provided to local managers might be one of the important solutions. Therefore, this study explores the effects of local managers’ education and training on corporate culture in foreign companies in China. Using qualitative research, this paper presents different training forms existing in foreign companies. Furthermore, the training in general in terms of establishment of corporate culture was evaluated. General training is classified as formal and informal training or coaching in accordance with training purposes. Formal training refers to training that is indispensable to the survival and development of the corporation, while informal training is concerned with the training that happens without deliberate design or purposes. The two kinds of training can develop local managers in a complementary way. It is argued that these elements exert a complementary influence on the corporate culture with an emphasis on values and rituals.

Managing foreign R&D laboratories in China

This paper focuses on the management of R&D units established by foreign companies in China, investigating R&D missions, site build‐up, integration with the parent organization, and overall performance measurement. The research is based on 37 qualitative expert interviews with local R&D directors and managers conducted between 2001 and 2004, using a semi‐structured research questionnaire, and semi‐quantitative research done on 199 foreign R&D labs in China. Cultural influences on R&D management, location advantages, expatriate involvement, and organizational evolution of local laboratories are discussed. We find that foreign R&D laboratories in China are not only important vehicles for local market development but also increasingly important sources of locally developed technology.

Management development in international companies in China

A range of managerial styles are commonly found in foreign companies in China. Multiple factors influencing management development in China require attention owing to differences of management practices and cultural values across nations. This paper discusses the relationship between values systems and managerial styles among foreign and indigenous managers in China.