Foreign-controlled Enterprises, China's Interests To Protect

It is one of the basic state policies in China to utilize foreign investment positively, reasonably and effectively. Since the reform and opening-up, China has got tremendous achievement in utilizing foreign investment. The great capital, technology and management experience brought by foreign investors have boosted China economic development and industrial restructuring, created employment opportunities, increased fiscal income, accelerated the establishment of socialist market economy, improved the transfer of state owned enterprise management mechanism, quickened the interconnection with global economy, and elevated Chinese technical, management and living standard and highly enhanced the comprehensive ability of Chinese management team. However, China also has a lot of problems in utilizing foreign direct investment, which attracts much concerns as for how to maintain economic independence, how to guarantee the sound development of national economy especially recently economic crisis happened in Asia and the economic crisis has become concerns for Chinese government, economic and academic institutes and enterprises. More and more people come to realize the importance of economic security from their own experience. I analyzed the current status on the protection of Chinese party's interest in Sino-foreign enterprise where the foreign party holds the dominant share, combined the success and lessons on the protection of Chinese party's interest in DSF company to conduct a deep investigation into the actual status of the harm done to Chinese party interest in the enterprise where the foreign party holds the dominant share and the relevant reasons and draw the conclusion that the reasons resulting in the harm to Chinese party's interest in the enterprise where the foreign party holds the dominant share include wrong decision-making for the project, asset losses, improper management and insufficient conscience in self-protection from Chinese party and etc. This thesis gives a thorough analysis through logic induction, combing theory with practice, practical experimentation and statistic analysis based on the above mentioned reasons based on international ecoiiomic law, foreign investment law. game theory and the theory put forward the Comrade Deng Xiaoping, the second-generation state leader. on utilizing Foreign i nstrnent. I concluded that for better control of foreign direct investment and orient it to serve for the socialist economic growth, especially considering how to protect the Chinese party's interest in the enterprise where the foreign party holds the dominant share, we shall adopt state macro-control and non-share control inside the enterprise to predict, prevent and solve economic risk and protect state economic security. Firstly, as for state macro-control, under the precondition of establishing laws and regulations and furthur improving infrastructure, besides boosting investment soft environment and attracting more investment, we shall furthur strengthen and improve the policy for China in introducing foreign direct investment by enhancing the state economic security coefficient to prevent foreign investor抯 monopoly. Secondly, as for the non-share control, we shall furthur improve the management staffis ability in knowledge renewing and the ability in performing duties in accordance with international behavior standard to strengthen the conscience in self-protection from management officers arid staff in Chinese...