The Research On Legislation Of Chinese Small Enterprise Direct Overseas Investment

Domestic small enterprises are an important part in Chinese national production system. It is also the foundation of entire operation and development of Chinese economy. To enlarge the comprehensive national power, enterprises should not only attract overseas investment but also invest in foreign countries. Domestic small enterprises are main contribution in Chinese overseas investing.Since direct overseas investment is still not mature in China, few scholars did research on direct overseas investment. Government has not respected on this project much, nor there had any theoretical guidance, mature legislation or successful exemplification. This paper will analyze circumstance and some legal problems of Chinese domestic small enterprises direct overseas investing. Some parts will also refer to foreign experience to get resolution.There are two parts besides introduction and conclusion.In introduction, it would briefly introduce purpose of direct overseas investment, and the differences between that in small enterprises and big enterprises, private enterprises. This part also clear four main compositions in this paper—risk of overseas investing, loss of domestic capital, permission of foreign investment and conflict in investment.In first part, it will focus on circumstance of Chinese small enterprises direct overseas investing. First of all, this part will explain definitions of overseas investment, small enterprises and domestic enterprises. Also, it analyzes in details on personality of domestic enterprises in international environment. Second, this part will insist the necessity of Chinese domestic small enterprises overseas investing. The supports used are-- first, background of open to the outside world in Chinese economy(involving necessity of enlarge comprehensive national power and international emulative power, requirement of international trade, emulation in international business, way to avoid barriers to trade, and important method of sustainable development); second, development of domestic small enterprises (involving small enterprises take big part in Chinese economy, reformation of economy, and benefits in overseas investing). Third, this part will talk about possibility of successful overseas investing in five parts: administration of investment, enhancement of Chinese economy, economic globalization, China joins WTO, being a wise choice of small enterprises. Fourth, this part will introduce circumstance of legislation of domestic small enterprises overseas investing: development of overseas investment, foreign legislation on Chinese investment, legislation in China and foreign experience.In second part, this part will focus on four main problems of domestic small enterprises direct overseas investing: protection on international investment risk, loss of national capital, permission from government, and resolution of business conflict. It will analyze Chinese regulation, foreign experience and similarity and differences of domestic small, big and private enterprises to get some suggestion on legislation. First is the risk of international investment. This part will state specialty and presentation of overseas investing risk. The analysis of insurance on overseas investment includes three parts--regulation of insurance on overseas investment, founding and acting of Chinese international insurance company, and joining of bilateral protection and multilateral investment concord. The result will also give some advice on improving the regulation on insuring overseas investment from government and enterprise. Second is loss of national capital. It will analyze this problem in three parts: definition and classification of national capital, circumstance of regulation on national capital, and reasons of capital loss in overseas investment. After this is introducing some laws of administration on investment capital outside of China and indicate some insufficiency to give advice on improving regulation of government and enterprises. Third is permission of overseas investment. This part will analyze the problems in regulation of overseas investment and that of domestic small enterprises. Using experience in foreign countries, we could improve the regulation of domestic small enterprises overseas investing. Fourth is resolution on conflict of overseas investing. This part will talk about some cases of overseas investment conflict and international institution of resolving the conflict. At last is statement of three parts--government, intermediaries and enterprises in overseas investment conflict.In conclusion, this part will conclude main points and theories appeared in this paper, and restate the importance of improving regulation of domestic small enterprises overseas investment. Only mature legislation could produce a nice foundation of economy.