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The Research On Main Improper Actions Of Multinationals In China And Relevant Laws And Regulations

Posted on:2008-02-25Degree:MasterType:Thesis
Country:ChinaCandidate:C D LiFull Text:PDF
GTID:2166360242459827Subject:Law
Abstract/Summary:PDF Full Text Request
The large and powerful multinationals plays a very important role in economic globalization,which bring China a mass of capital, precious managerial skills and advanced technology, techniques and equipment and made a great contribution to the development Chinese economy by virtue of investment and management in China. However, multinationals always do some improper even illegal actions in China by their strong economic power in nature of seeking for best interests, which impair the interests of the state, of society and of relevant party, for instance, some multinationals control and rob our natural resource; some escape Chinese tax revenue and foreign exchange regulations by means of transferring price; some restrict competition and hold the market for making excessive profits by taking every measures of restriction. Moreover, multinationals establish factory with chimney and sunset corporation with serious damage and pollution by taking advantage of breaks of imperfect Environmental Protection Law which seriously hurt Chinese environment and people's lives and property; they merge State-owned enterprises with ill intention, which results in the loss of state assets; they limit transfer and competition of technology and they disobey the law of China about protecting laborer and consumer even impinge on their legal rights, etc. it is obvious that the investment and management of multinationals in China is double-edged sword with positive and negative effect on development of Chinese economy, therefore, how to lead multinationals investing in China, standard their management, play their positive role and reduce their negative role in development of Chinese economy and growth of corporation is a major task us today.Basing on the situation of Chinese legal system and main improper actions of multinationals in China, this dissertation simply analyzes and discusses the improper actions of multinationals and related regulation and control by law. Certainly, this dissertation can't describe all improper actions of multinationals in China but just some of these improper actions deserving discussion in writer's research scope according to writer's opinion. This dissertation consists of three parts, and the first part mainly concerns the concept, characteristic and legal status of multinationals. In this chapter, the writer quotes different documents about the concept of multinationals at first, and then the writer concludes four basic legal characteristics of multinationals including aggregation, internal connection, without-legal person and transnational basing on the concept of multinationals. Finally, basing on the legal characteristics of multinationals and different description in General Provisions of the Civil Law, company law, law of contracts, Securities Law, tax law, corporation law, law of investment, accountancy law and so on, the writer expounds the legal status of multinationals, namely, they don't possess the quality of legal person as an organization and aren't the legal subject; their subsidiary in China possesses the independent legal status and legal person for corporation with industrial and commercial registration.In the second part, on condition that the concept, characteristic and legal status of multinationals are definite, the writer enumerates over and analyzes some of their improper actions deserving discussion, for instance, escaping revenue of China; effecting the optimized allocation of Chinese resources, the industrial structure invested in China is unreasonable; merging corporation of China with ill intention; impacting Chinese corporation and brand and impairing legal rights of minority shareholder in subsidiary in China and obligee.Moreover,they monopolize market and technology, control and monopolize price and gain high profit in China, etc; they impinge rights and interests of Chinese laborers including directly damaging economic and personal interests of laborers and indirectly damaging their legal rights. In the end of this part, the writer enumerates over other improper actions of multinationals in China.In the third part, the writer analyzes and makes research on Chinese department law and related policy's regulations concerning improper actions of multinationals aiming at improper actions of multinationals aiming in China. Firstly, the writer believes that all multinationals composing affiliated enterprise is the base for relieving their improper actions. Secondly, basing on the characteristic of release of information being hard and combining the Euro-American legislation concerning release of information, the writer puts forwards that the law concerning release of information should be established as soon as possible since there is no any this kind of law. Thirdly, as for multinationals escaping Chinese law concerning revenue, the writer puts forwards some suggestions concerning law and regulation including improving system of the declaration of tax payment, strengthening multinationals'burden of proof concerning pay taxes, justly distributing the earning of affiliated enterprise; intensifying the control law concerning escaping tax by means of altering investing and managing form. Fourthly, for standardizing investing behavior of multinationals, the writer puts forwards that intensifying macro-management of investing behavior of multinationals; unifying national treatment; establishing and improving legal system and review system of transnational merger and acquisition; carrying out anti- merger and acquisition strategy aiming at multinationals merging Chinese cooperation with ill intention. In addition, the writer expatiates on that intensifying improper connection among subsidiary of multinationals, establishing supervising system of transferring price of multinationals, improving law and legal regulation against monopolization and other Chinese related laws and relieving manners. Finally, the writer analyzes and makes research on administration of multinationals outside the country and coordination to the conflict between china and foreign countries in terms of application of law.Certainly, it is unrealistic to create a unified multinational law, and there is no theory backing for this. We can only try to establish and perfect Chinese legislation for improving the quality of judicature, formulate a self-contained, fair, transparent and feasible legal system, which accords with regulation of market economy and is in response to developing tendency of global economy for inducting and standardizing actions of multinational in China including investment, management and tax payment and for promoting healthy development of Chinese market economy and global economy.
Keywords/Search Tags:Multinationals
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