China's Road Franchise Legal Issues

Following the successful experience in developed countries, China has explored the franchise operation in its highway for the purposes of raising funds and accelerating highway construction, which has been proved to be an effective attempt. Nonetheless, out of the defects of the current legal system and those of operating process, and the imperfection of investment environment, the exploration has encountered a mountain of unexpected difficulties. Several years ago, the relevant departments set out to revise "Rules of Highway's Operation Rights Transferring", however, the attempt turned out to be fruitless due to various reasons. In this light, the author contends that it is of great significance to research on the topic of highway's franchise operation. This thesis makes a thorough analysis and demonstration on the major problems that currently exist in highway's franchise operation in China upon which a set of suggestions are put forward in order to solve the contradictions between laws and those between law and practice.The thesis is divided into 4 chapters. Chapter One elaborates on definitions of highway's franchise operation and franchise rights, outlining the legal relations in highway's franchise operation. The author submits that the legal relations in highway's franchise operation are neither pure administrative nor civil; instead, they fall into the overlapping area of the two. Chapter Two outlines the origins, development and the current legislation of highway's franchise operation in developed countries, then goes on to examine the background of the highway's franchise operation in China, adumbrating the major problems in terms of legislation. Staring from the four basic steps of highway's franchise operation, to wit, operation rights transfer, highway construction, operation and transfer, Chapter Three analyzes the problems that surface in the practice of highway's franchise operation in China where the author submits her original view on how to fill the legal vacuum. On the above grounds this Chapter elucidates the reasons for the problems and the defects of the present law as well. Chapter Four puts forward the principles, emphasis and the specific suggestions for improving the legal system of highway's franchise operation..