Study On The Foreign Capital Purchasing State-owned Enterprise

Foreign capital purchasing investment, which is a collateral investing method for new investment, has drawn more and more attention for its proportion and status in the total foreign investment our nation received. At the same time, being a complicated economic activity, each country has its own laws to regulate it for economic foundation and political reasons. Therefore, it's important for us to analyze and research the legal problems concerning foreign capital purchasing Chinese state-owned enterprises. The writer here tries to start with the concept and types of foreign capital investing purchase, and discuss the present situation, shortcomings and perfection of our provisions concerning foreign investment through comparison.The whole paper includes 3 parts. The first part mainly discusses the general concepts of foreign investment purchase. The writer also discussed the types and economic effects of foreign investment purchase. The author holds that foreign investment purchase is the act that foreign investors can enter Chinese market through investment. It can be classified as capital purchase and stock purchase. These have many differences in many aspects. In general, it can also be classified as direct purchase, indirect purchase and other kind of purchase. These can also be divided into many sub-kinds, and many new kinds of purchase will be established with the development of practice. The reason why foreign investment purchase can exist is that it can reduce trading cost. Its economic effect is remarkable. The legal problems concerning foreign capital purchasing our state owned enterprises includes the following: the legal problems concerning foreign capital purchasing our state owned enterprises, the form of purchasing, the determination of purchasing price, the lack of purchase exitchannels and the protection of shareholders' rights and interests.In the second part, the author mainly compares the legal system concerning foreign capital purchasing investment, the author believes that WTO will greatly smooth the negative factors and directly affect Chinese law, especially the principal of equal treatment will become the basic principal of Chinese law. In addition, the author compares and analysis the law of American, Japan and other counties, and than the author get some useful conclusions: (1) the aim of law is to ensure fair competition, protect its own interests and against monoply;(2)the limitation accords with the development level and other factors;(3)put much energy on how to protect native shareholder's interest;(4)have the practicable regulations. Naturally, which will be fit to Chinese law.The third part is the most important one, and the author put more energy in the presentation, shortcoming and how to improve it. Since later 1980s, china has set up more than 20 laws and regulations, which affects the different part of foreign capital investment and greatly support foreign capital purchase activities. However, as a new thing, we have to realize they still have shortcomings, while learning other countries, we should analysis it carefully so as to perfect them.On that basis, the author suggests some advice, which including:(l) the reconstruction of Chinese law;(2)the treatment of foreign capital enterprise;(3)the perfection of the institution;(4)the affection of Chinese law beyond china; and etc. Furthermore, the author is interested in the detail section of them.