On The Issue Of Conflicts Of Jurisdiction Of Transnational Corporations

As a kind of modern economic associations, the multinational enterprises(MNE) have played an important role in promoting the development of relationship between countries in the internationalization of economic processes, and they do business such as trade and investment in the world by means of its various subsidiaries. It remains largely undisputed that the multinational enterprise-falling, as its name implies, simultaneously under a host of different national jurisdictions-when regarded as a whole extends beyond the controlling capacity of any single national legal system. At present, the question concerning the jurisdiction conflicts of multinational enterprises has become a prominent one in the field of the private international law. On the basis of the theory about the jurisdiction of legal person, this article aims at to find out the ways to get rid of the conflicts by explaining the reasons of jurisdiction conflicts. The author advises to set up the appropriate principles of jurisdiction and to sign on more international treaties, which would provide the behavior regulations to the multinational enterprises and harmony the conflicts. At the last part, the author discusses the shortage of our country's legislation and puts forward some advices.This article introduces the basic theory of international civil and commercial jurisdiction in its first part. The jurisdiction is one sovereignty power of every state, and it will decide which country's law would be used and whether the judgments could be recognized and enforced outside the state. The execution of jurisdiction is based on the jurisdiction principles. Because of different ideas of legislation and law values, the civil law and the common law have different jurisdiction principles to control the legal persons. The civil law countries persist in the traditional territory principle, and the nationality principle to pursue the security value of law. The common-law countries develop the effect doctrine and the jurisdictional rule of reason to find out more flexible connecting sectors. With the connection of the MNE, the jurisdiction principles with different contents are conflict when they are used to settle the same dispute. From the second part, most countries strive to extend their jurisdiction scope because of the importance of jurisdiction. The multinational enterprises are different from the general national companies, and they stretch beyond the boundaries of their home state on a massive scale, operating producing and administrative units, branches and affiliated companies simultaneously in several countries. Naturally the MNE is prone to seek a favorable legal environment for its investment, with possible tax, foreign-exchange or other advantages, which appear to go beyond the reach of traditional legal restraints. The home and host states strive to dominate the MNE aiming at protect their own politics and national interests. In order to protect the prospective interest of the law, some countries intend to suggest the extraterritorial application of national economic laws on the basis of flexible jurisdiction principles to the questions of monopoly and the responsibility of company, and therefore the jurisdiction conflicts of multinational enterprises have come into being.The author studies the ways to harmony the jurisdiction conflicts in the third part. The conflict of jurisdiction would hurt the enthusiasm of the MNE behaviors, and destroy the relationship of countries at the same time. It is necessary to resolve these conflicts. The jurisdiction rules can realize the law value of equality and efficiency. The first important step is to establish the general jurisdiction principles on the basis of the super using of the territory principle, and to avoid the stark traditional principles. Each state should balance all interests of the MNE when they intend to dominate it, and set up the principle of Forum No convenience, the court first seized to limit their own sphere of jurisdiction and to correspond conflict. With the help of abstract guidelines provided by Hague Convention, the international society should sign on more profit treaties on the jurisdiction.In the four part, the author discuss the shortage of our country legislation, and advice to get the rid of phenomenon of excessive jurisdiction. Nowadays the MNE monopolize more and more companies in our country, our government should make legislation on antitrust law, and endue it reasonable extraterritorial enforcement. At last, the author thinks our country should learn from the international society and set up a scientific system of jurisdiction rules to control the MNE.