The Hidden Name Of The Foreign Investors Invest In A Number Of Legal Problems Analysis

After taking part into WTO, China became more and more open to the world. As a result , more and more foreign investors invest in China by various ways including setting up Joint Venture, Co-production Venture, WFOE. During this time, dormant investment has occurred.Since the law of our country does not contain express and direct stipulations on dormant investment, this article defines its concept and compares with other similar concept at the first part. Meanwhile, this article tries to find out the reasons of dormant investment emergence and conclude the risk of dormant investment. In practice, we should pay more attention to the complexity of dormant investment since it involves the dormant investors, the apparent shareholders, the companies and other third parties. Because of lacking regulations, Judges could not keep continuity when they have to deal with different or similar cases which arising from dormant investment. Then, the author analyze the legal relationship between the various parties involved in the dormant investment (including the legal relationship between the dormant investors and the apparent shareholders, the legal relationship between the dormant investors and the companies and the legal relationship between the dormant investors and the third parties), and explore their particularity.To dispose of these disputes, this article also gives some advice. The new corporation law provides nothing to the dormant investment because different attitudes are adopted in dealing with these disputes in this field. In our opinion, since it is impossible to regulate dormant investment in laws recently, drafting and improving the judicial explain is the best way to handle these problems. At last, according to the cause of it's emergence, we advice to improving our foreign investment administrative system to control dormant investment. Meanwhile, on one hand, we should speed up the administrate reform and improve laws and regulations, on the other hand, we will punish and take charge of the foreign dormant investor as while.