An Analysis of the Legal Framework of Chinese Foreign Joint Equity Ventures

Author

Ping Luo, Fontbonne College

Year of Award

1988

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business

Department

Business Administration

Keywords

China, trade, international, foreign, investment

Abstract

This thesis focuses mainly on the evaluation and implementations of the Chinese Joint Venture Law which indicates to foreign firms China's commitment to allowing them to work with Chinese firms in its economic development.

Joint ventures did not appear in China until 1979. Their appearance is a necessity of China' s drive for Four Modernizations. Thus, Chapter 1 traces back to the two movements of the Great Leap Forward and Cultural Revolution, which greatly hindered the development of China's economy. Only after the death of Mao Zedong and the fall of the Gang of Four did the present Chinese leaders begin to realize the necessity of attracting foreign investment in China. For this, China promulgated the first Joint Venture Law in 1979.

Chapter II tends to provide a general overview of the Chinese Foreign Joint Venture Law as well as a brief introduction to its specific regulations.

Chapter III dwells on the evaluation of the Chinese- Foreign joint ventures. In this section, I cite some joint ventures which operate successfully in China, with a particular emphasis on the joint ventures in Shanghai. At the same time, reasons for this success are given in order to prove the applicability of this economic cooperation in China.

Chapter IV examines in detail some of the unsuccessful joint ventures and the complaints to the foreign partners. These resulted actually from the vagueness and lack of detail of the law itself, as well as the much-attacked bureaucracy and corruption in China. I believe that, as time goes on, many of the problems will be solved, and the prospects for the Chinese-foreign joint venture are bright.

Chapters V and VI review the present situation of joint ventures in China. I attempt to give some suggestions for the improvement of the foreign investment environment. I hold that the legal framework of the joint ventures must be improved in order to attract more foreign investors.

Document Type

Restricted Thesis

Recommended Citation

Luo, Ping, "An Analysis of the Legal Framework of Chinese Foreign Joint Equity Ventures" (1988). All Theses, Dissertations, and Capstone Projects. 532.
https://griffinshare.fontbonne.edu/all-etds/532