Study On The Legal System Of Individual Foreign Direct Investment In China

With the rapid development of economic globalization, investor demand foroptimal allocation of assets around the world is increasingly strong. Currently,compared with the enterprise foreign investment in China, our regulation forindividual overseas investment is not perfect, has yet to open individual foreigndirect investment. At the same time, the relevant researches of individual foreigndirect investment is also very scarce, mostly of them is exploring in the economicand financial fields.Although opening the individual foreign direct investment may trigger manyregulatory challenges, but for the status quo of that people transfer their moneyoverseas only through the grey channels, opening is the trend, and also an inevitablerequirement of national economic transformation and upgrading. Therefore, theauthor selected the research for legal system of individual foreign direct investmentin China to study on, taking Wenzhou financial reform as starting point, drawinglessons from the successful experience of developed countries and emerging marketcountries, combining with the relevant policies in Wenzhou financial reform and theconstruction of Shanghai Free Trade Zone, emphasizing empirical research, bringingforth theoretical innovation on the basis of on-the-spot investigation, finally putforward the most practical law system construction plan.In chapter one, the author introduces the related concepts of individual foreigndirect investment, distinguishes it from enterprise foreign direct investment andindividual foreign indirect investment. And then the author in-depth analyzes theimportance and necessity of opening the individual foreign direct investment underour current environment, briefly introduces China’s legislation of enterprise overseasinvestment in project approval and exchange control. This chapter paves the way forthe coming chapters. Chapter two is devoted to introduce the running condition of pilot individualforeign direct investment in Wenzhou, describe Wenzhou’s potential demandfavorable conditions for pilot, in-depth interpret the pilot program, point out that thewhole process is very slow and the program has not yet to be approved at present.Combined with field investigations, the author points out that the pilot individualforeign direct investment in Wenzhou existing many problems, and explores thedeeper reason beneath the surface.In chapter three, the author analyzes the characteristics of developed andemerging market countries in international investment, introduces the respectivelaws and regulations in relevant aspect, and then combined with China’s specificnational conditions, draw on the successful experience of those countries, putforward the corresponding countermeasures.In chapter four, according to China’s specific national conditions, the authorproposes to build the legal system of individual foreign direct investment includingpromotion and regulation based on the above analysis. First of all, considering theopen range, the author discusses open fields and open areas respectively, and thenelaborates the promotion system and the regulatory system of individual foreigndirect investment. Promotion system is primarily to encourage and supportindividual foreign investment activities, including finance and taxation, informationand technology; Regulatory system is mainly to supervise and manage individualoverseas Investment activities, including project approval and exchange control.Finally the author summarize the whole article, calling on that individualforeign direct investment should be permitted in China as soon as possible. It willeffectively promote China’s economic to transfer and upgrade.