PERSPECTIVE: Foreign Direct Investments in China – Practical Problems of Complying with China’s Company Law and Laws for Foreign-Invested Enterprises

Yuan, Anyuan | January 1, 2000

Foreign investors in China face a legal system and legal issues that are very different from those found in the United States. This article seeks to illustrate some of the important differences in China’s corporate law that govern or affect foreign investors’ interests. The purpose of this article is to help foreign investors become aware of legal problems and investment risks in creating a foreign-invested enterprise in China. This article also proposes changes to existing Chinese laws that will more reasonably accommodate the legal concerns and protect the legal interests of foreign investors (as well as incidentally benefiting domestic Chinese investors).