Research On Legal System Of Foreign Investment Market Entry In China

With the development of science and technology as well as division of international labor, international investment activities have seen continuous growth over the past decades. In the course of economic globalization, the amount of foreign capital flowing to China and the size of foreign investment in China are constantly increasing. Foreign investment is playing a significant role in China's economic growth, industrial upgrade and employment. To align with the upheaval of foreign investment, Chinese lawmakers and policymakers have promulgated numerous laws and rules in connection with foreign investment. By now, a basic legal framework of foreign investment has been established. It is undoubted that, however, the legal framework is not comprehensive, and requires further improvement. For example, the"double-track"legislation system cannot meet the demands of economic development, legislation and law enforcement are not sufficiently transparent, coherent and consistent, the legal systems of mergers and acquisitions by foreign investors, anti-trust and national security review are far from mature. In order to utilize foreign capital in a better and more effective way, and in the meantime, maintain China's whole economic interest and security, it is necessary to improve the legal system of market entry of foreign investment.This essay adopts the approach of literature study and comparative analysis and follows the thoughts of raising the issue, analyzing it and then solving it. Building on the study of a great number of literature, including books, journals and published essays, this essay summarizes the basic concept of legal system of foreign investment market entry, compares the legal systems of foreign investment market entry of developed countries, analyzes the shortfalls of China's current legal system of foreign investment market entry, and then puts forward suggestions as to how to improve the system. Specifically, this essay includes the following contents:First, it summarizes the basic concepts regarding the legal system of foreign investment market access,including what foreign investment market entry means, what basic forms of foreign investment market entry are and the like. This part serves as a theoretic basis for the analysis hereafter.Second, it analyzes and compares the legal systems of foreign investment market access of developed countries, such as the United State of America, United Kingdom and Japan, and briefly summarizes the legislation trends of those developed countries.Third, based on the above research, analysis and comparison, the essay assesses and analyzes the shortfalls of China's legal system of foreign investment market access, including"double-track"legislation system cannot meet the demand of economic development, legislation and law enforcement lack sufficient transparency and consistency, the legal system of mergers and acquisitions by foreign investors, anti-trust and national security review are far from mature, etc.Finally, the essay discusses possible solutions as to how to improve China's legal system of foreign investment market entry. The solutions include adjustment of the legal system of foreign investment market entry, increase of transparency and consistency of legislation and law enforcement, further relaxation of restrictions on foreign investment market entry, advancement of measures of foreign investment industrial guidance, improvement of the legal systems of foreign mergers and acquisitions, antitrust and national security review, and promulgation and improvement of the legal system of private equity investment by foreign investors.