Improvement China's Foreign Investment Law

Since the first foreign investment law-the law of sino -foreign joint venture-was born, our country' s legal system of foreign investment has been developing constantly for over 20 years with the process of reforming and opening-up. During the twenty years, our country's amount of foreign investment has increased progressively from the less than 1 billion dollars per year initially to ten billion or even one hundred billion dollars later. The law of foreign investment has played important role. However, after 1990s', our counrty' s law of foreign investment faces unprecendented challenge. On the international level under the background of economic globalization, the law of international investment has developed towards the encouragement of investment liberalization and under the WTO rules, has realized the global multi-lateral regulation of the international investment entity for the first time. Domestically the ever - developing market economy, espeacilly the successful accession to WTO at the end of 2001, make the reform and perfection of our country' s foreign investment law very imminent.The article is individed into five parts.Part one briefly analyses the challenges facing our country' s foreign investment law. The article combined with the requirement of the WTO investment rules, the trend of liberalization of international investment, the present situations of our country' s foreign investment demonstrates the imminence of perfecting our country' s foreign investment law.Part two makes speacial enquiry into the train of thought and key questions of perfecting foreign investment law. The article, from the main problems in the legislative modal of our country' s foreign investment law, according to the principle ofdeveloping national economy, promoting investment liberally and linking up with the corporate law, briefly expounds how to restructure the legislative system of our country's foreign investment law and on the basis separately solve the above-mentioned three problem which exist in our country' s foreign investment law.Part three expounds how to perfect the legal formation of the foreign-funded enterprises. The article, according to the three forms: the company, the partnership, the sole-investor enterprise, restructure the legal formation of the foreign - funded enterprises, and re-design the present provisions of the foreign - funded limited liability company, the foreign - funded partnership enterprise , the foreign-funded enterprise and the exclusively foreign-owned enterprise.Part four mainly expounds the perfection of the administrative mechanism of the foreign-funded limited liability company. The article, by reviewing the present administrative system of our country' s foreign-funded limited liability company, analyses the problems resulted form the shortage of share-holder meeting, the power of chairman of board, the inflexible regulations of management and control agency, then put forward counter -measures.Part five makes detailed enquiry into the control problem and its solution of the foreign - funded enterprise. The article briefly introduces the origin and features of the control problem of the foreign-funded enterprise, and make use of legislation and practice of regulating the abuse of the power to control enterprise adopted by the developed countries such as Germany and America, then puts foward the conception of establishing the system of limiting our country' s foreign-funded enterprise' s abuse of the power of control.