China's Supreme People's Court promulgated a new rule further optimize the environment for foreign investment

China focus: China's Supreme People's Court promulgated a new rule further optimize the environment for foreign investment

Xinhua Beijing, 16 Aug: Supreme 16, announced the "trial of foreign investment enterprises in case of problems." In China further in the process of reform and opening up, the "provisions" for the many foreign-funded enterprises have a good news.

16, the provisions of the "include:" clearly without administrative approval of contract validity of rules; establishes ownership transfer contracts without approval of processing rules; clearly provides the enterprise with foreign investment dormant investment dispute processing rules; clearly defines the recognized foreign-invested Enterprise shareholders liability rules.

In addition, the "requirements" on foreign investment enterprise equity pledge contract disputes, since the provision of false information to the equity change approval lead to disputes over ownership of enterprises with foreign investment, foreign investment enterprise shareholders equity transfer of consent, right of disputes handling issues detailed provisions.

To this end, the economic aspects of the experts believe that the introduction of the "rules" will further optimize the China foreign investment legal environment.

The Supreme People's Court rules for foreign investment enterprises provide a unified judicial disputes scales

"Foreign investors to Chinese to invest, and improve the legal environment is an important guarantee for its profitability, the requirement for China foreign investment law system in question do further clarification, the foreign investment more predictability and certainty. "Michigan international economic law, Associate Professor Lu Xiao Jie said.

The Chinese Ministry of Commerce press spokesman said earlier this year, at this stage, it is not China's cheap labor has been the primary factor for attracting foreign investment. For current operating in China for about 29 million foreign enterprises, as well as the future possibly entering China foreign investment enterprises, China's current foreign investment in the most important factor is the political stability, economic development and constant improvement of the legal environment.

The morning of 16, no doubt to the provisions of this judgment adds a new note.

After reform and opening up, China's legislature has passed the People's Republic of China on Chinese-foreign contractual joint ventures "," People's Republic of China on Chinese-foreign equity joint ventures and the law on foreign-funded enterprises People's Republic of China. These laws and their implementing regulations as well as other related laws and regulations, make up the China foreign investment law, foreign investment in China to provide basic legal foundation and legal protection.

In addition, the Constitution, the General principles of civil law, company law, contract law, the code of civil procedure, the patent law, trademark law, the Customs Act, the arbitration law and other related legislation on foreign investment in the relevant legal provisions and specific provisions.

Tsinghua University School of law, international economic law, Associate Professor Lu Xiao Jie's view, these laws exist, on the one hand to the rational utilization of foreign investment in China and protection of foreign capital provides important legal basis, on the other hand there have been a foreign investment enterprise legal lag and applicable in the clutter.

With further reform and opening up in China, foreign investment enterprise domain disputes is also increasing.

According to the Supreme People's Court, in the last two years, in the field of foreign-invested enterprises in dispute cases amount and quantity of foreign civil and commercial cases 20%. From the establishment of foreign invested enterprises, change it to terminate all links produced by the dispute are reflected in the judicial practice.

Why these problems occur?

Lu Xiao Jie said that China's foreign investment legislation is to start from the beginning of reform and opening up, China's rule of construction is the initial stage, civil and commercial legislation has just begun. In this case, in order to promote foreign investment, China enacting a number of foreign investment law. Since then, China has further improved the civil commercial laws that as a general method can also be applied to issues of foreign investment.

However, the current foreign investment legislation, have strong executive approval, inevitably and as private law exists in other legal conflict between. For example, the conflict between the contract law, and as enterprise organizations of conflict between company law. These conflicts caused by foreign investment law between complexity and disorder, leading to a court in considering the practice of law.

"16, the provisions of the ' Supreme ', a solution to these challenges in the most difficult of the three issues: the effectiveness of the contract without permission; anonymous shareholders rights issues; foreign companies pre-emptive rights of shareholders. "Lu Xiao Jie said.

However, China's legal environment while in economic construction and the process of reform and opening up, constantly improve, but there is still a further refinement of the space. But China's legal profession also continued efforts for this.

Lu Xiao Jie, the two years, many scholars abolition of foreign law, enacted the investment act instead, which aims at a higher level of legal address foreign investment legal systems of this kind of out-of-order, further regulate foreign investment process administrative approval rights clearance and streamlining administrative approval authority and the relationship between private rights.

"16, the provisions of the this is the highest court in the present legal system looking for Middle Road. "She said.