Comparative Study On Legal Protection Of Foreign Investment In Turkmenistan And China

Foreign investment is very important to the growth of a country's economy,which is particularly important during the country's economic transition.Because foreign investment has a positive effect on the economy of a host country.Foreign investors invest in new factories,new plants and increase the production capacity and service facilities of a host country.The budgetary funds of the host country are not sufficient to cover all these projects,and some of the funds need to come from foreign investors,and rely on them to produce new products and provide services for the benefit of society.In this way,the state can transfer funds to the other important,strategic and socially useful areas.The impact of foreign exchange inflows in less developed and developing countries is particularly striking.Another effect of foreign investment is that investors pay taxes on their income,which is an additional source of revenue for the host country's national budget.Therefore,the level of legal protection of foreign investment is considered to be the main factor to judge a country's attractiveness to foreign investment.In general,the most potential investment areas in Turkmenistan are oil,gas,agriculture and construction industries.In order to enhance the diversity of the economy,the government of Turkmenistan has been working on attracting more foreign capital.In order to attract foreign investors,the Turkmenistan's government has implemented a number of incentives and provided legal protection for them.However,as far as the legal protection effect of foreign investment is concerned,it is still very inadequate.At present,Chinese regulation of foreign investment law are mainly three:"Wholly Foreign-owned Enterprise Law","Sino-foreign Equity Joint Venture Law" and "Sino-foreign Contractual Joint Venture law",referred to as the "three laws of foreign investment".These three laws has played major role to deepen the reform and opening up,and promoting the national economic development of China.Since then,in order to meet the needs of practice,the State Council and relevant departments of China have successively promulgated a large number of administrative regulations,department rules and normative documents.But these documents are too large and complex,and there are many conflicts and uncertainties between the laws and regulations.Under the "Belt and Road" initiative,economic exchanges between Turkmenistan and China will be more frequent,therefore,this paper will take China's "Wholly Foreign-owned Enterprise Law","Sino-foreign Equity Joint Venture Law","Sino-foreign Contractual Joint Venture law",and the "Turkmenistan's Foreign Investment Law","Turkmenistan's Trade Guide" and "Turkmenistan's other legal provisions of investment process" as a basis on a comparative analysis of two countries in market access,foreign exchange,taxation,expropriation and compensation,dispute resolution and other aspects of the different provisions,and evaluate the two countries 'foreign investment protection level.Finally,this paper will compare the level of foreign investment protection of the two countries and make suggestions on how to improve the level of foreign investment protection.