The Responsibility Of Environmental Damage In The Foreign Investment Of Transnational Corporation

With the continuous development of economic globalization,the world economy is becoming more and more integrated.Multinational corporations,as the most important economic entities,can integrate resources to optimize the allocation of resources globally,and have other competitive advantages of other companies.Multinational corporations have brought great development to host economy.Meanwhile,the environmental problems caused by business activities have been endless.Because of profit driven company,in order to obtain the maximum profit with the minimum cost,multinational companies will often take to lower environmental standards in developing country do not allow the establishment of high pollution,high risk and high energy consumption of the industrial transfer,the implementation of double standards in the home country and the host country environment.MNCs are generally developed countries,and have relatively complete environmental legal system.Most of the host countries are developing countries.For multinational corporations,there are no laws or responsibilities related to environmental damage,so they cannot be remedied or imputable.Therefore,it is very important for us to study the liability of environmental damage caused by multinational corporations in foreign direct investment,and clarify the undertaking of responsibilities,which is of great significance for the continued deterioration of the environment and the sustainable development of economy.The research object of this paper is the responsibility of environmental damage of multinational corporations.The first part starts with the definition of TNCs.By analyzing the characteristics of TNCs,it shows that a series of legal problems mayarise from TNCs.Because of the independent corporate personality between parent subsidiary companies and multinational corporations,the parent company often uses this feature to avoid legal liability.This part also analyzes the reasons of TNC’s outward FDI and the impact of TNCs’ foreign investment on the environment.The transfer of environmental pollution is one of the important reasons for the foreign direct investment of some multinational companies.The environmental standards of the MNCs are usually high,and the laws on environmental protection are more standardized and stricter.Therefore,many multinational corporations have turned their eyes to the lower environmental standards of the developing China.High enterprises turn to low control areas to achieve pollution transfer.In order to develop the economy,the developing countries often give a large number of preferential policies to the multinational companies in the introduction of foreign capital to reduce the environmental responsibility of the multinational corporations.The multinational companies often carry out double environmental standards in the home country and the host country.The second part analyses the rescue of the victims after the transnational corporations have implemented the environmental rights invading behavior.Because TNCs are made up of entities distributed in many countries.Therefore,after causing environmental damage,there are various ways of relief to choose from.The tort actions of transnational corporations occur in host countries.Therefore,seeking the judicial remedy of host countries is the most economical and convenient way for the victims of the host country.In general,there are two ways for victims to seek judicial relief from the host country: one is to directly prosecute the subsidiary companies that directly cause environmental pollution;and the two is to bring a lawsuit against the parent company of a multinational company in the host country’s court.In the case of the judicial relief of the host country cannot fully protect the rights of the victims,it is another way for the injured party to seek judicial relief in the home country of a multinational company with a sound legal system and strict environmental responsibility.In addition to the judicial remedy of the host country and the home country,in the event of major environmental pollution,the host government directly intervenes,exerts pressure on the torts through the power of the state to obtain maximum compensation,reduces the degree of environmental damage to the lightest,and protects the interests of the victims as much as possible,It is an effective way;the third part analyzes the difficulties and obstacles of investigating the responsibility of multinational corporations for environmental damage.Although it isconvenient for the victims to prosecute in the host country,the cost may be lower,the legal basis for the host country’s jurisdiction is sufficient,and the host country generally does not refuse to exercise jurisdiction over this type of appeal,but the remedy is also abused.First,the host country lacks special legislation and environmental standards are low.When the host country’s judicial remedies fail to fully protect the rights of victims,victims sometimes choose to seek judicial relief to their home country.But there is a certain obstacle to seek the judicial relief of the MNCs’ home country.That is,the MNCs may give up their jurisdiction by the principle of inconvenient court.The fourth part summarizes the current situation and deficiency of the legislation of international and domestic environmental responsibility,and puts forward the perfect countermeasures from the international and domestic two levels in view of the problems mentioned..In order to restrain the behavior of transnational corporations to harm the environment,the international community is taking positive measures.Since the transnational corporations are not the main body of international law,the international legal norms on environmental protection are not yet perfect,and the transnational corporations should take the initiative to undertake environmental responsibility in addition to the acts of damage to the environment according to the laws of the international law.Besides obligations and responsibilities,international norms that are not legally binding should also be observed.From the view of our country’s legislation,the laws of the transnational corporations are mainly concentrated in the aspects of tax regulations,investment models and foreign exchange management,and there are no special regulations on the liability for environmental damage caused by transnational corporations.The legislation on the environment in China is not systematic.The enforcement and punishment of the criminal law and administrative law are not enough,and the provisions on the responsibility of the parent subsidiary companies of the MNCs are also lacking.In view of the defects in the legal system of environmental damage to transnational corporations in China,it mainly regulate the behavior of transnational corporations in two directions,domestic law and international exchange and cooperation.