On Problems Concerning China’s Legal System Of Foreign Investment Analysis Based On China-Publication Case

This article mainly discusses certain problems concerning China’s legal system regarding foreigninvestment, based on the rulings made by the panel and Appellate Body in China-Measures AffectingTrading Rights and Distribution Services for Certain Publications and Audiovisual EntertainmentProducts. For the purpose of attracting and utilizing foreign investment, China established its foreigninvestment legal system and adopted restrictive industrial policy. China further amended its legal systemregarding foreign investment to fit into its accession to World Trade Organization. In spite of these, thereare still problems lying in the foreign investment legislation of China.The first and second chapters of this article are overviews on the foreign investment legislation of Chinaand the agreement relating to international investment under World Trade Organization. The third chapter,which is the major part of this article, examines current problems on China’s foreign investment legalsystem, including misunderstanding of the nature of foreign invested enterprises, the lagging legislationin foreign investment sector, inconsistency of the industrial policy with China’s WTO commitments andimproper restrictions on foreign invested enterprises.By identifying and analyzing these problems, this article aims at providing certain point of view onimproving the legal system of foreign investment of China.