...Opening a Foreign Law Firm in China The Chinese government officially opened China’s doors to foreign law firms in 1992, even though there was already some foreign presence since the 1980s. This “opening” of the market was very limited and foreign law firms were still not quite sure what they could or could not do, or even what their rights were. Given the very restrictive nature of the relationship between China and its national lawyers, foreign law firms were quite cautious in their approach towards practicing law in China. A very much anticipated change was expected when China acceded in 2001 to the WTO. As a consequence, China had to, amongst other compromises, open its legal market, making it friendlier for foreign lawyers and law firms. China made several promises of radical change to the US and EU communities, but unluckily these promises fell short. In this sense, even though some improvements were made, the laws promulgated were quite disappointing for the international community, as many subjects were not clearly stipulated (very broad ideas that are not defined) and in other cases, important topics were ignored. The laws we are discussing are the: (i) Regulations on Administration of Foreign Law Firms’ Representative Offices in China, promulgated on December 22nd, 2001 and with effective date of implementation of January 1st, 2002 (the “Regulations”); and, (ii) Stipulations of the Ministry of Justice Concerning the Enforcement of the “Regulations on...
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...xM&A Law Firm LEGAL GUIDE TO DOING BUSINESS IN CHINA CONTENT I. OVERVIEW ...................................1 II. FORMING A COMPANY IN CHINA ................................................................2 III. MERGERS AND ACQUISITIONS ................................................................8 IV. TAXATION ...................................12 2011.05 Address: 13th/14th F, Huamin Empire Plaza 726 West Yan An Road, 200050 Shanghai,China Tel: (8621) 52370950 I. OVERVIEW This guide provides foreign investors an overview of the laws and regulations governing business in mainland China. After 30 years law making and reform, in 2010s, China has already promulgated a body of written statutes governing commercial affairs, including company management, employment, making contract etc. There exists an even larger body of implementing regulations and circulars issued by governmental authorities. The law in China often evolves in a piecemeal fashion, with certain regulations applicable experimentally only in certain geographic regions or with the issuance of temporary “interim” regulations that nevertheless have the force of law. The written statutes and regulations are often pitched at a relatively high level of generality, leaving significant discretion to implementing officials. Questions of law are resolved generally directly by the administrative agencies in charge of enforcing those laws, rather than by the courts. V. EMPLOYMENT AND LABOR LAW ......................
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...and Cui 55 S Y East Meets West P O S I U Strategic Human Resource Management in China: by Xiaoya Liang, Janet H. Marier, and Zhiyu Cui Executive Overview This paper outlines important ideological, institutional, and cultural contexts that shape what strategic human resource management practices are possible in Ghina. A detailed review of the main components of the high-performance work systems model suggests that when they are introduced into the Ghinese socioeconomic and political context, the cost-benefit calculus for high-performance work system human resource management practices is different from that in the U.S. context. Yet, in our review of Ghina-based strategic human resource management research we find the expected positive relationship between high-performance work systems and organizational performance in companies operating in Ghina. We conclude with a case example to illustrate how Ghinese firms might be both adopting and adapting the high-performance work system model to better fit their current cultural and economic context. T he Study of strategic human resource management (SHRM) emerged out of researchers' interests in understanding the relationship between human resource management and organizational performance (Delery & Doty, 1996; Kaufman, 2007). Since the late 1980s, most research evidence in this vein has been collected from firms located in the United States (see Combs, Liu, Hall, &. Ketchen, 2006; Huselid & Becker, 2011; Kaufman...
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...University Vietnam Bachelor of Business Program Assignment Cover Page GOOGLE STRUGLING TO SURVIDE THE ETHICAL ISSUSES IN CHINA I. Introduction Google is the company who provide a wide range of services to both normal consumers and business. They are best known from their search engine while incorporating with other online technologies such as Gmail and Google chrome. While being one of the top company in the world, Google seem to be struggling when operating in China – the country with the largest number of internet user. Though Google is popular with their motto “Don’t be evil”, they were struggling to adapt with Chinese policy toward certain areas such as censorship and certain actions from the government toward Google prevented it from competing with Baidu –their local competitors. Consequently, Google officially leave china and redirect to Hong Kong in order to escape from the censorship of Chinese government in 2010. This report will analyze certain ethical issues occurred between Google.cn and the government of china. II. Ethics and its impact In order to coexist with society businesses require to satisfy the society’s increasing demand of ethically responsible business practices (Joyner and Payne, 2002). Google has always put ethics in high priority during their business and it seem that their firm kept their promises with their...
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...people have regarded as China is the one of the biggest manufacture countries in the world. Cheap labor is widely seen as a prerequisite to China’s economic rise and as a major threat to China’s competitors. The low production costs in China have been blamed for countless job losses and plant closures elsewhere in the world as more and more investors flocked to this country. However, the Labor Contract Law of China, that came into effect on January 1, 2008, has been one of the most disputed laws passed in recent years. It was the product of a series of lengthy consultations that took place between the state and social, domestic as well as foreign actors affected by it. Many entrepreneurs see the new law as a threat to their businesses in China. Chinese new Labor Contract Law is the most significant reform to the law of employment relations in more than a decade. Its final form emerged following highly contentious debates over the terms of earlier drafts- debates involving not only a range of Chinese actors, but also international business lobbyists and labor organizations. The Law was enacted represents a compromise between the competing demands of these many interest groups. This article briefly surveys the reasons for the enactment of the Labor Contract Law, the polarized drafting process, and the key matters it addresses. The assessment presented is that the Law is, overall, a necessary and beneficial contribution to the regulation of work in China. 2. The Need For the...
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...JSTOR Terms and Conditions Lawyers, Political Embeddedness, and Institutional Continuity in China’s Transition from Socialism1 Ethan Michelson Indiana University, Bloomington This article uses the case of Chinese lawyers, their professional troubles, and their coping strategies to build on and develop the concept of political embeddedness. Data from a first-of-its-kind 25-city survey suggest that political embeddedness, defined broadly as bureaucratic, instrumental, or affective ties to the state and its actors, helps Chinese lawyers survive their everyday difficulties, such as routine administrative interference, official rent seeking, and police harassment and intimidation. The article draws the ironic conclusion that legal practice in China reveals at least as much...
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...Yinzhi Miao Oversea Listing and State-Owned-Enterprise Governance in China: the Role of the State LL.M. Long Paper Harvard Law School Supervised by Prof. Reinier Kraakman and Mark Roe April 2012 Oversea Listing and State-Owned-Enterprise Governance in China: the Role of the State Yinzhi Miao Abstract: There are both considerate horizontal and vertical governance problems in the Chinese state-owned-enterprises (SOEs). Due to their privileged positions in the political economy, traditional institutions of corporate governance are far from perfect. Thus the value of oversea listing as a governance mechanism is highlighted, and that could be better revealed by a deeper analysis of the benefit-and-cost balance by the government which controls the SOEs. However, effective as it is, oversea listing could not be a marvelous antidote to all governance ills. Further, as the two major governance disasters of oversea listed SOEs shows, if the government lacks a proper self-positioning, nontrivial negative implications will be brought to SOEs governance via oversea listing. The ultimate function of corporate governance in SOEs thus relies heavily on public governance. Key words: state-owned-enterprises, oversea listing, corporate China governance, 2 Table of contents I. Introduction ....................................................................................................................4 II. The Governance problems of Chinese SOEs and the limitations of...
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...Smith | 12/1/2011 | EXECUTIVE SUMMARY VIH Aviation has built credibility for its well trained staff, well maintained equipment, safety standards, and technological developments. The performance of the organization has caught the attention of some foreign firms, and additional business ventures will analyzed. China’s second-largest airline has proposed a joint-venture offering shares, profits, cultural know-how for equipment and managerial know-how. Australia’s HNZ group has proposed an acquisition and has offered their staff, equipment, and cultural know-how in exchange for technological expertise and heavy equipment. Finally the sister corporation VIH Cougar in the Gulf of Mexico could be further expanded. The analysis completed was a competitor analysis; Bristow, PHI, and CHC are all industry leaders bringing their own expertise to the table. Bristow is one of the largest companies in the industry and recently started using TCAS2’s (traffic collision avoidance system) for new equipment. PHI dominates the North American oil and gas market, and has the most air time experience of all firms. CHC also has strong ties with oil and gas firms, but after a significant loss they are looking to be acquired by another firm. Overall the helicopter industry is growing due to the new exploration sites for oil and gas, and many opportunities exist. The second part of the analysis was comparing the economic, political, legal systems: and cultural, ethical, and human rights standards...
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...Introduction The legislation process of Anti-Monopoly Law has been indeed a long journey. The new AML is a tremendous leap forward for China, bringing China into the modern world of antitrust and competition law. The law, which aims to prevent dominance of any one company, was first proposed in 1994. But its pace was slow until 6 years later because of pressure from big state-owned companies and multinationals that had just started doing business in China. It wasn't until 2001, when China joined the World Trade Organization, did the process accelerate. In August 2007, the law was finally passed by the National People's Congress. Although the measure compromised with state-owned enterprises, which dominate industry, people tend to believe it will make way for free market competition against monopolies. It's gained a lot of praise and set a milestone in China's legal history. In our daily life, we can face several kinds of monopolistic practice, for example, if your grocery store sells you a bag of tea with the condition that you buy a pound of sugar that would be a tie-in sale. In this paper, first, I will show the detail in the China competition law, then I will specific the monopolistic practice in Price discrimination which I think we usually face most in our society, and in the last part will be the impact of the Anti-monopoly law. China competition law On 30 August 2007, after more than a decade of legislative efforts, the Standing Committee of the National People’s...
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...21 IntCorp ch6-2.qxd 27/01/2009 11:59 Page 167 6.2 Corporate Governance in China Neng Liang and Michael Useem Corporate governance in China has undergone significant change during the past three decades as the Chinese economy has liberalized and developed. Prior to the historic reforms initiated in 1978 the economy had been structured as a state-owned, centrally planned economy; practically all enterprises were government or commune owned. Today, many companies are partially or wholly privately owned, and that historic change has brought a sea change in Chinese corporate governance, with securities policies well in place and governing boards well established. The first significant changes in company ownership came in the 1980s as small state-owned enterprises and collectively owned enterprises in rural areas began issuing shares to the public. As the reforms spread to larger enterprises, the rapid increase in companyissued securities led the Chinese government to swiftly create a capital market from scratch. In 1990 it authorized the cities of Shanghai and Shenzhen to establish national stock exchanges. The stock exchanges were tiny at the start: just 14 companies were listed at the outset, and in the early years state agencies and the listing companies kept some two-thirds of the shares out of the market. Company listing and trading volume rapidly increased in 21 IntCorp ch6-2.qxd 27/01/2009 11:59 Page 168 168 ᔡ PROFILES OF...
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...after the period. | 5 | Indented, italicized, lowercase heading with a period. Begin body text after the period. | 1. Introduction. Provide a brief focus statement about your paper and what the reader can expect. 2. Global World Economy. Discuss the importance of globalization in today’s global economy. 3. Cultural and Political Differences. Discuss cultural and political differences that global managers consider when expanding abroad. Are values and ethics different in each culture? Explain. 4. Going Global Strategies. Explain why companies are forced to expand globally. Discuss possible strategies for competing globally. Evaluate the advantages and disadvantages of the different strategies and policies that firms use to enter foreign markets. What are the main factors that influence a firm’s decision of market entry? 5. Suggestions and Recommendations. Provide practical and specific recommendations and suggestions for managers and expatriate to expand in this country of your choice for this project. 6. Summary. Provide a few concluding paragraphs about what your paper discussed and how it can be beneficial for practitioners. Introduction This paper will The New Global Economy Hill (2011) defines globalization as the multifaceted shift toward a more integrated and interdependent world economy. It includes the globalization of markets and the globalization of production. The...
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...Why is China investing in Africa? Evidence from the firm level By Wenjie Chen, David Dollar, and Heiwai Tang1 August 2015 Abstract China’s increased trade with and investment in Africa has boosted the continent’s growth rate but has also generated considerable controversy. In this paper we investigate China’s outward direct investment (ODI) in Africa using macro and micro data. The aggregate data on China’s ODI in African countries reveal that China’s share of the stock of foreign investment is small, though growing rapidly. China’s attraction to resource-rich countries is no different from Western investment. China’s ODI is uncorrelated with a measure of property rights and rule of law, whereas Western investment favors the better governance environments. As a result, Chinese investment in strong and weak governance environments is about the same, but its share of foreign investment is higher in the weak governance states. The micro data that we use is MOFCOM’s database on all Chinese firms investing in Africa between 1998 and 2012. We use key words in project descriptions to code the investments into 25 sectors. This database captures the small and medium private firms investing in Africa. Contrary to common perceptions, there are few projects in natural resource sectors. Most projects are in services, with a significant number in manufacturing as well. In our country-sector-level regressions based on firms’ transaction-level data, we find that Chinese ODI is profit-driven...
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...advantages and disadvantages of the countries should be considered. For example, China is a developing country, and during the past 30 years, China’s rapid economic development shows that China has a strong power in developing economic. In recent decades, China stays on one of the leading positions in direct investment and therefore a lot of investments to this country are considered to be profitable for any company or investor. The reasons are simple: the growth of the economy and a large number of different projects. Foreign direct investment in China, due to stable growth potential of the economy and a huge production resources, aimed at both the external and the internal market.The innovative ability is a great attraction for investment managers around the world. In contrast, a lot of foreign investors had chosen China for investment and this resulted in a very big competition. Nevertheless, USA is a successfully developed country. And its economy is the top one in the world. As the most important country in the first world countries, the USA has many good experiences in global business. The most strong enterprises were set in the USA and it means that the competition in the USA is very huge. This competition affects many areas, not only the market place but also the labour market and the use of resources. All of these causes higher costs and reduces the profits.Also, American “antitrust law” regulates that a company with market...
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...Introduction As the world economy moves towards globalization, China has become more open to trade with other countries. Its international trade volume had risen from US$20.6 in 1978 to US$1,422 billion in 2005 (Wang & Liu, 2007). Since China’s exports mainly focus on the labor intensive and resource intensive industries, this exports pattern causes a serious environmental problem in China. Green barriers become a kind of emerging non-tariff barrier which is used for the developed countries to protect their production and economic development in recent years. The main forms of green barriers include green tariff and market access, green packaging and labeling requirements, green technology standards, Green health inspection system, environmental costs and green subsidy system (China west products, 2011). China’s agricultural, mechanical and electrical products are all facing green barriers, such as pollution, noise, safety standards and recycling requirements (Wang & Liu, 2007). How to cope with green barriers becomes the biggest challenge that China faces to continuously expand its exports. The purpose of this paper is to address and analyze the green barrier issue in China and to provide my ideas and suggestions on China’s exports related to green barrier. My following analysis is mainly based on the positive effects of green barriers and the specific example of China’s tea exports as well as three policies to cope with green barriers. I feel confident that you will...
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...Table of Contents Introduction 2 Population 2 Economic Structure and Major Industries 2 Major Firms 4 China’s Stock Market 6 China Securities Regulatory Commission 7 Legal Enforcement of IFRS 8 Summary of contents of financial statements 9 Transition Process of Accounting Standards 10 Auditing Standards 11 Full convergence with International Standards 11 Verification of Capital Contribution 13 Comparison of China’s old GAAP and IFRS 14 Accounting Education in China 15 The Chinese Institute of Certified Public Accountants 15 The CICPA Overview 15 The CICPA Examination 16 Accounting Student 18 China’s Cultural Influences on Accounting 19 Appendix 1. Comparison of CASs and ISAs (As of 2006) 22 Appendix 2. Accounting Firms in China 24 Introduction Population In 2012, China's population amounts to 1.3 billion – an increase of 365 million since 1980. Yet, population is growing at a decelerating pace and should reach its peak in less than two decades. Current methods of population control will be relaxed as the growth of population slows. The fertility rate is presently 1.6 births per female (below replacement level) and is expected to remain at that level in the medium term. The median age is steadily rising and by 2011 it was 35.5years –16.9 years greater than the figure for 1980. In fact, population aging is occurring more quickly in China than in most other countries. The country's working age population will begin to fall by 2017. By...
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