Study Of Foreign Investment In Real Estate Development Law

After implementing reform and opening-up policy for thirty years, real estate industry of China has recovered step by step and has become the second main field of foreign investment after the manufacturing industry. The foreign investment has not only promoted the joint connection of domestic real estate industry and international market but also advanced the level and standard of real estate industry of China. However, on the other side, the foreign investment also increased the housing price and speeded up the formation of bubble in the real estate market, which had negative impact on the economy security of our country. As a response, Chinese government has recently implemented macroscopical control of heated real estate sector. Especially from the second half year of 2006 to year 2007, a series of policies setting restrictions on foreign investment in real estate industry has been promulgated. In this article, with such background, the author makes analysis on legal theory and legal issues in practice in connection with foreign investment in real estate development and provides his personal opinion concerning introducing foreign investment in real estate development in a healthy manner, encouraging foreign investment in participation in indemnificatory housing construction as well as taking social responsibilities by such foreign-invested enterprises.This article consists of four chapters with forty thousand words in total. The author focuses on the major tache in real estate development by direct foreign investment and provides elaborate analysis by combining academic knowledge with applicable laws and regulations.The first chapter discussed the market-entry issue, the pre-condition of foreign investment in real estate development. Through the explanation of the basic concept of "foreign investment", "market-entry" and etc., comparison of real estate market entry of foreign investment of several typical countries as well as looking back and summarizing the real estate market entry of foreign investment of China, the author put forward his own opinion concerning how to further improve the real estate market entry system for foreign investment of China.The second chapter is the clearing-up of the acquisition methods of land-use-right in real estate development by foreign investment. The author makes analysis on the relevant legal issues in connection with the remising, transfer (including module of share transfer and project transfer), lease and administrative allocation of land-use-right. Meanwhile, the author also makes analysis on the legal theory related to the land-use system of our country in order to verify the legal basis and ultimate rights of acquisition of land-use-right.The third chapter is the analysis for main methods of making investment in real estate development by foreign capital and legal risk therein. The author is going to demonstrate the legal risk and solution related to development of real estate in terms of sino-foreign cooperation through case study and legal analysis.The fourth chapter is the analysis for proposal of introducing foreign investment in participating in indemnificatory housing construction. The author begins with analysis on the system and current status of economic housing and creatively puts forward the idea of introducing foreign investment in development of economic housing. From the author's perspective, introducing foreign investment in development of economic housing construction will not only solve the problem of housing supply for low-income families but also contribute to improving the supply structure of foreign-invested products in the real estate market.In conclusion, through this article the author intends to solicit more and better opinions in improving real estate legal system of China, introducing foreign investment in real estate sector in a healthy and stable manner as well as making personal contribution to the people's livelihood of our country.