Since 1979, China has opened up its purely socialist, state-run economy to include elements of the free-market system. By doing so, China is paving the way towards becoming an economic superpower. Nowadays, an increasing number of foreign investors are conducting business either with or in China. To do this successfully, foreign businessmen and professionals must prepare themselves by learning about the business environment in China.
In addition, business regulations affect accounting work directly. An overview of the Chinese business law and its environment is therefore presented in this paper. The emphasis is then placed on a brief elaboration of the major business laws or regulations that are currently in effect in China.
A series of business laws and regulation have been enacted and enforced by the government. The newly introduced business regulation include
1) The enterprise Law
2) The law for joint ventures
3) The corporation law
4) The banking laws
5) The economic contract law
6) The foreign exchange regulation
7) The insurance law
8) The advertisement law
9) The trademark law
10) The antitrust law
11) The Income tax law
Many western companies have now invested heavily in China. The rapid economic growth, coupled with the Chinese government’s steadfast endeavours to improve the environment for foreign investment, has made China an attractive target for foreign investors.
However, some bad signs, such as socio-political instability, high inflation, tense labour-capital relations, inadequate energy supply, underdeveloped infrastructure, limited local financing and low labour productivity, still intimidate many foreign investors.
Since 2011 China joined the world trade organization ...
... middle of paper ...
...international law to spark life into trade zones, Hong Kong, 2013
World investment report 2013, at 6
World bank, Governance and Development, Washington DC: World Bank, 1992, at 4, see also Perry, PhD Dissertation, note 10 above, at 95, 96
Current Series on FDI and Development : www.unctad.org/diae
FDI Statistics : www.unctad.org/fdistatistics
Global Investment Trends Monitor : www.unctad.org/diae
Investment Advisory Series A and B : www.unctad.org/diae
International Investment Policies for Development : www.unctad.org/iia
Investment Policy Monitor : www.unctad.org/iia
Investment Policy Reviews : www.unctad.org/ipr
Issue in international Investment Agreements I and II (Sequels) : www.unctad.org/iia
Transnational Corporations Journal : www.unctad.org/tnc
World Investment Prospects Survey : www.unctad.org/wips
World Investment Report : www.unctad.org/wir
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