Foreign Investment in China: The Cross-Cultural Dilemma



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7 The Statistics of FDI by Form as of 2002, Authoritative Site on Foreign Direct Investment in China, 2003/07/10 .

8 K H Wang, Chinese Commercial Law (2000) 126-128.

9 Optical Society of America, 2003 China Forum, March 2003 china>.


Yang and Lee, above n 6.

10 Wang, above n 9, 37.

11 Ibid 280.

12 Ibid 279. For example Article 14 in The Law of the People’s Republic of China on Sino-foreign Joint Equity Enterprises, and Article 26 in The Law of the People’s Republic of China on Sino-foreign Cooperative Enterprises.

13 D H Smith, Confucius (1973) 196.

14 Wang, above n 9, 280.

15 Ibid 38.

16 Ibid 6. Cf J Chen, ‘Chinese Law, Towards an Understanding of Chinese Law, Its nature and Development’ in Kluwer Law International (1992) 2. See also Alice Erh-Soon Tay, ‘People’s Republic of China from Confusianism to the Socialist market Economy The Rule of Man vs the Rule of Law’ in Poh-Ling Tan (ed), Asian Legal Systems (1997) 15.

17 Wang, above n 9, 10.

18 Ibid 11.

19 P B Potter, ‘The Chinese Legal System: Continuing Commitment to the Primacy of State Power’ (1999) The China Quarterly 10.

20 Wang, above n 9.

21 See Preamble, Constitution of the People’s Republic of China 1982, amended 1999.

22 Wang, above n 9, 15-16.

23 Ibid 16.

24 Ibid.

25 Ibid.

26 J S Mo, International Commercial Law (1997) 451.

27 Ibid 452.

28 Ibid.

29 Ibid.

30 Ibid.

31 Ibid.

32 M Silk, M Openshaw, V A Hulme,The lessons of GITIC’ (May/Jun 1999) The China Business Review 36-39.

33 B Laurence and D R Li, The Business Guide to China (1996) 1.

34 However, this is not necessarily across the board. The once widespread and broad decision-making powers of officials have to a great extent been curtailed and reframed into procedural decision-making within the scope of the legal system.

35 Li, Lam and Qian, above n 5, 116.

36 J Child, Challenges of Establishing Successful Joint Venture in China, Spotlight on John Child, 3 Apr 2003 .

37 Smith, above n 15, 1.

38 Robert, The Return to Confucius? History Today (1998).

39 Dawson, Confucius (1981) 79.

40 Ibid 1.

41 M Posth, ‘Face to Face: with Martin Posth of Volkswagen Asia-Pacific’ (1994 Fourth Quarter) International Motor Business.

42 Ibid.

43 Ibid.

44 Child, above n 38, 2.

45 Joyce Millet, ‘Key Concepts in Understanding Chinese Culture’ (2000) WomenAsia.com, in 10/06/2004.

46 Ibid.

47 Ibid.

48 Ibid.

49 L Brahm and D R Li, The Business Guide To China (1996) 103.

50 C D Myrna, D Raffaele, ‘Cross-border Cooperative Agreements: the Case of China’ (Fall 1994) Multinational Business Review.

51 Li, Lam and Qian, above n 5.

52 G Hofstede, Cultures and Organizations: Software of the Mind (1991).

53 Myrna, Raffaele, above n 52.

54 Posth, above n 43.

55 Child, above n 38, 5.

56 Y Y Wong, T E Maher, R A Jenner, A L Appell and L G Hebert, ‘Are Joint Ventures Losing their Appeal in China?’ (Winter 1999) SAM Advanced Management Journal.

57 Wang, above n 9, 279.

58 Articles 51 & 52 The Arbitration Law of the People’s Republic of China.

59 See Articles 46-50.

60 Article 14 in The Law of the People’s Republic of China on Sino-foreign Joint Equity Enterprises, and Article 26 in The Law of the People’s Republic of China on Sino-foreign Cooperative Enterprises.

61 Perhaps the ‘win win’ style of negotiation espoused in American business schools has its origins in Chinese culture.

62 Brahm, Li, above n 51, 104-105.

63 Mao Ze-Dong, December 1939, Names in Pinyin, years added and text abridged by Chung Yoon-Ngan, Introducing China (3 Jan 1999). mhonarc/msg01318.html> 11 June 2004.



64 Ibid.

65 Ibid.

66 Ibid.

67 Colm Foy and Angus Maddison, China: A World Economic Leader (1998).

68 Wang, above n 9, 24.

69 Mo, above n 28, 453.

70 Article 8 Regulations for the Implementation of the Law of the PRC on Sino-Foreign Equity Joint Ventures.

71 Anyuan Yuan, ‘Foreign Direct Investments in China – Practical Problems of Complying with China’s Company Law and Laws for Foreign-Invested Enterprises’ (Spring 2000) Northwestern School of Law Journal of International Law & Business.

72 Y S Huang, FDI in China: an Asian Perspective (1998) 10.

73 J Chen, Chinese law: towards an understanding of Chinese law, its nature, and development (1999) 221.

74 J Stratton, ‘The straight and Narrow’ (Jan/Feb 1998) The China Business Review 24-25.

75 R Pomfret, Investing in China: Ten years of the ‘Open Door’ Policy (1991) 127.

76 Chen, above n 75, 210.
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