Comparing Study On Lease In China And Foreign Countries

Lease industry, which is mainly characterized with finance lease, started from the U.S. in the 1950s, and then spread to Europe, Japan and other countries of the world. The lease industry plays an important role in the global economy .The average total transactions value in many countries amounts to 15 percent of total equipment investment in the countries. This proportion is even above 30 percent in America. Nowadays the lease industry has been an important financial recourse in the equipment investment section. The lease industry in China is still in a low level after 20-year-long development. The proportion of leases value in equipment investment is just about 1 percent. What are the reasons? Should the lease industry be encouraged in China? How to develop the Chinese lease industries? After an in-depth study on Chinese lease industry and a comparison with the foreign lease industries, this dissertation will answer the above questions.Under the form of leasing contract, leasing transactions have been generating many new functions such as financing, marketing, equipment management, balance sheet management and so on. One of main problem caused by lease's multiple functions is classification. There also are many differences about lease classification among the public law, private law and lease industry because they classify lease from different aspects. The classification of lease usually confuses the study and legislation on lease. The dissertation clearly compares studies about lease classification among the civil code (or commercial law), accounting standard, tax law, and lease industrial. Based on this, the dissertation gives a definition used in the article. Lease is a long-term equipment transaction contact with a financial purpose with non-individual customer, which includes financial lease and operation lease.To find the international experience on lease development, we do some comparative study on lease industry in some countries where lease industry is well developed. Generally speaking, there are six development stages in world lease industries. The object of contract and the form of transaction will differ due to the different stages the countries are in. Same as China, Korea is also a developing country. So its experience is more valuable for us. We spend a lot effort to study the Korea lease industry. Why are lease industries developed so well in many countries? The reasons we find are the following: a main financial recourse, help for investment, aid for the development of small and mid-sized entities, speeding circulation of products, and help for finance innovation.We find that the legal definitions on financial lease are not unified worldwide. First, the legal definitions on financial lease are different in different countries. The differences come from different theories on lease which are:1)divided payment sales theory 2)lease contract theory 3)monetary loan contract theory 4)asset warranty transaction theory 5)nameless contract theory. Second, even in one country the definition of financial lease under different laws are not the same. This status does not mean low level of legislation. This is determined by the character of lease, that is, the nature of a lease transaction may be different from the form of the contract, but different laws have different a focus .For example, civil law focuses on the form of a contract while account law focuses on the nature of contract.In order to push the development of lease industry, many international organizations keep uniting the recognition of lease and coordinating the international affairs on lease. The International Association of Private Law issued the 'Unidroit Convention on International Financial.Leasing' , which clearly separates thefinancial lease from operation lease and provides a reference on dealing with international conflict on lease. International Accounting Standards Committee keeps working to unify the account standards worldwide. Now many countries in the world have accepted it. The BASELL â…¡ initially was issued to unify the regulation o...