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Chinese Relates to Foreign Investment in the Basic Legal System--Other Laws and Regulations



Chinese Relates to Foreign Investment in the Basic Legal System--Other Laws and Regulations

Ⅰ. Judicial interpretation and judicial policy document
Provisions of the Supreme People's Court on Several Issues concerning the trial of disputes involving foreign investment enterprises (I) is the first time that the supreme judicial authority of China has made a systematic explanation on the issue of such laws. It mainly focuses on the adjustment of the disputes between Chinese and foreign investors, focusing on the adjustment of foreign funded enterprises’ equity governance structure, but it is not involved with the settlement mechanism of civil and commercial disputes of foreign investment enterprises.

Ⅱ. Legal system of investment dispute settlement mechanism
This legal systems include arbitration and justice. China's domestic law does not support the investment disputes between foreign investors and the Chinese government submitted to the International Centre for Settlement of Investment Disputes to resolve disputes.
However, according to the provisions of the administrative procedure law and the administrative licensing law, foreign investors have the right to bring up the administrative reconsideration or litigation in the time of having investment disputes with the local government of China.
But in a dispute with the Chinese central government, it can only make a request for reconsideration of the State Council without recourse to judicial review, also include that any Supreme Court doesn’t have the power of judicial review with the State Council.

The mainland court for foreign investment disputes litigation enjoys exclusive jurisdiction, foreign investors may not stipulate overseas (including Hong Kong and Macao Chinese) court accepted such disputes

Ⅲ. China's accession to the protocol of the WTO and other WTO regulations
WTO Laws and regulations is mainly reflected in the legislative stage on the legal system of foreign investment in China. The government of China in the WTO had in the protocol of accession in a clear commitment to the WTO regulations in the "unified implementation of obligations and obligations of" transparency ", so the legislature must ensure no illegal the duty rules.
Although the Chinese court does not recognize the direct application of WTO Laws and regulations in the domestic law system, in the trial of foreign investment disputes will be cautious about the rules and regulations of the WTO rules and regulations.

by-----Chinese Law Network

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