Research On Legal Regulation Of Malpractice Of Transnational Corporations In China

With the development of international ecoconomic exchanges, the trend of economic globlization is being strengthened. The international flow of capital leads to the new economic carrier—transnational corporation. Transnational corporations can be traced back to 1600, while the morden transnational corporations came about in 1860s, and developed rapidly after the World War Two. As the result of capitalism, the history of transnational corporations in China is just a few decades, but its legal status has been established. Transnational corportations have played an important role in the national and international economy. With the steps of reforming and opening, the transform of economic system, and accession into WTO, China has absorbed vast foreign investments, through preferential industrial policy. And the foreign investments have made up for the shortage of construction funds, and promoted the technical innovation and optimization of industrial structure of our country. Nowadays, China has become the biggest trading power, and the second biggest recipient of FDI in the world. Since our economy develops so rapidly and our domestic investment environment has been mature gradually, the number and scale of transnational corporations into our country has been larger and larger, while the malpractice has showed up,which has hindered the development of our national economy and infringed the benefits of our indusries and labourers. So we need to regulate the behaviers of transnational corporations on both the national level and international level. On the internatinal level, we need international cooperation and conclude more internatinal investment treaties, which is the most effective and essential way to solve the problems of transnational corprotaitons,such as Code of Conduct on Transnational Corporations, TRIMS Agreement, and GATS. Besides, there are many BITs and regional treaties, which are all the efforts of international society. On the national level, our contry needs to adjust the industrial policy with the change of economic situation, and improve the foreign investment legal system, which is set up gradually since the Sino-Foreign Joint Ventures Law in 1979, throuth learning advanced management experience of market-oriented economy from developed countries and internationalcorporation. To know the status and development tendency of transnational corporations in our country, make the regulation of transnational corporations under legalization to make transnational corporations serve and make contributions to both internal and internationl economy.