Legal Dilemma Chinese Enterprises To Invest In Germany

In2012, China’s foreign direct investment flows researched87.8billion dollars,increasing17.6%than the last year. It is the best record and helps China to be thethird great foreign investor in the world. Among those investment destinations ofChina, Germany is outstanding with its high-technology, strong economy andwell-developed legal system.This paper focuses on the law dilemmas when Chinese corporations invest inGermany. Firstly, we will research non-economic factors’ impact on China’s foreigndirect investment. Then, we will find out the overall situation of China’s foreign directinvestment and main characteristics of China’s direct investment in Germany byanalyzing a large quantity of statics from China’s foreign direct investment Reportpublished by Chinese government and World Investment Report published by UnitedNations. On this basis, we’ll research the law dilemmas when Chinese corporationsinvest in Germany, such as labor law, antimonopoly law, environment protect law andintellectual property law. Chinese corporations investing in Germany always have todeal with these law issues. The differences in the legal system, economy level andculture are the main reasons for those law dilemmas.In order to avoid conflicts in law, a Chinese corporation should investigate Germanand European law carefully and make a thorough plan before investing in Germany.To deal with those law conflicts which already happened, Chinese corporations havethree options to protect their own rights and interests. They can turn to localgovernment for remedies. If they have used out of local remedies, they can ask forChinese government’s diplomatic protection or turn the case into internationalarbitration tribunals.