Law Commons^™

The China Currency Issue: Why The World Trade Organization Would Fail To Provide The United States With An Effective Remedy, Marcus Sohlberg

Cornell Law School Inter-University Graduate Student Conference Papers

A critical issue in the global trading system that came to the forefront in 2010 concerns exchange rates. Having suffered to various degrees through the worst economic and financial downturn since the Great Depression, many large trading nations have sought to achieve economic recovery through export-led growth. In order to boost international competitiveness, many have engaged in competitive devaluations, i.e. interventions in currency markets to devalue domestic currency. According to Brazilian Finance Minister Guido Mantega this situation has escalated into a “global currency war”.

This paper focuses on China’s practice of maintaining an artificially undervalued currency, and addresses the question …

Elephants In The Room: Challenges Of Integrating China Into The Wto System, Henry S. Gao

Research Collection Yong Pung How School Of Law

Since China’s accession to the WTO in late 2001, one of the most intriguing questions for trade analysts has been whether the “new kid on the block” would seek to disrupt the status quo in the WTO upon its entry. This paper answers the question by reviewing China’s participation in two key activities of the WTO, i.e., trade negotiations and dispute settlement, as well as another important component of global trade governance: regional trade agreements (RTAs). Drawing from an in-depth study of China’s record in these activities, the author argues that, overall, China has transformed from a passive “taker” of …

The Irony Of International Business Law: U.S. Progressivism And China's New Laissez Faire, Andrew B. Spalding

Law Faculty Publications

As the financial crisis draws U.S. business overseas and developing countries rise in influence, the regulation of international business has never figured so prominendy in federal law. But the dominant paradigm through which academics and policymakers continue to view that law-the so-called Washington Consensus-proves deeply misleading. A more accurate account of the components, origins, and aims of U.S. international business law reveals two striking ironies.

First, in discrete but critical ways, the United States no longer represents the comparatively laissez-faire approach to federal business regulation. Rather, owing to its origins in the Progressive Era, U.S. federal law directs corporations toward …

Taking Stock: China's First Decade Of Free Trade, Jun Zhao, Timothy Webster

Faculty Publications

China has established itself as a global economic presence in the past ten years. This article explains one important but overlooked aspect of this rise, China’s newfound interest in free trade agreements (FTAs). This paper situates the FTA boom within a framework of international political economy and China’s recent regional rise. This paper probes the question of how China selects its FTA partners, referencing US trade practice and policy as a framework by which to analyze China’s own preferences. This paper then explores the main features of China’s FTAs, finding that it has adopted a flexible FTA strategy that attends …

Private Regulation And Foreign Conduct, Adam I. Muchmore

Journal Articles

Current U.S. policy on safety regulation for imported food is based largely on ex post measures. Several reform proposals seek to strengthen the ex ante component of this regulatory program. These proposals rely on one or more of three basic strategies: direct extraterritorial regulation; delegation of regulatory authority to private entities; and delegation of regulatory authority to foreign government agencies. This paper explores the ability of each strategy to respond to several principal-agent problems relevant to imported-food safety: the regulatory license problem; interest group capture; and the reality of bribery and threats in many food-exporting countries. Through the lens of …

Taking Justice Into Your Own Hand: The Tbi Mechanism In China, Henry Gao

Research Collection Yong Pung How School Of Law

To protect the trade interests of their firms in foreign markets, several countries have established various institutional arrangements. For example, the United States has the section 301 procedure, while the EU has the Trade Barrier Regulation (TBR). Learning from their experiences, China also established its own Foreign Trade Barrier Investigation (TBI) mechanism in 2002. This article starts with a discussion on the background for its establishment as well as the substantive and procedural requirements for investigations under TBI. In the next part, the article discusses how TBI has worked in practice by reviewing the Japan – Quantitative Restrictions on Laver …

An Entity Sui Generis In The Wto: Taiwan's Wto Membership And Its Trade Law Regime, Han-Wei Liu

Research Collection Yong Pung How School Of Law

As one of the founding members of the General Agreement on Tariffs and Trade (GATT), Taiwan (the Republic of China or ROC) - the 17th largest economy, was granted accession to the World Trade Organization (WTO) in November 2001 after its observer status of eleven years. Taiwan, classified by most commentators as an "unrecognized state" or an "entity sui generis", has been excluded from most of the major international organizations. Taiwan's accession to the WTO, therefore, is considered to be an important breakthrough in diplomacy for the past decades. Notwithstanding its WTO membership, the Taiwanese Government has employed numerous trade …

East Asia Institutionalizes: China, Japan And The Vogue For Free Trade, Timothy Webster

Faculty Publications

In the past decade, East Asia has taken steps to increase regional integration. This paper examines the vogue for Free Trade Agreements (FTAs) currently raging in China and Japan. After mapping the regional links that knit East Asia together during the 1990s and 2000s, the focus then shifts to the specific trade agreements that China and Japan have signed. Both countries exhibit a particular FTA “style;” Japan has adopted a more orthodox and comprehensive approach to its treaties, while China has shown greater flexibility and gradualism when dealing with FTA partners. It is still unclear whether these efforts will lead …

Bilateral Regionalism: Paradoxes Of East Asian Integration, Timothy Webster

Faculty Publications

Like many other countries, China and Japan have recently signed a spate of Free Trade Agreements with countries in the Asia Pacific. This paper analyzes both countries’ styles of integration. While China favors multidisciplinary engagement (politics, security, economics), Japan is mainly interested in deepening economic integration with the countries in which it has already established transnational production lines. After analyzing individual FTAs signed by China and Japan, the paper ends by predicting that China’s multifaceted approach will promote greater integration in the Asia Pacific, and a more robust profile for China in regional affairs.

Taming The Dragon: China's Experience In The Wto Dispute Settlement System, Henry Gao

Research Collection Yong Pung How School Of Law

To many observers, a major challenge raised by China's accession to the WTO is whether the WTO dispute settlement system could cope with China, one of the major traders in the world with an economy that is halfway between a planned economy and a market economy. In this article, the author tries to answer this question by reviewing China's experience in the WTO dispute settlement system. Historically, the senior leadership in China attached disproportionate importance to the WTO dispute settlement system and preferred to avoid using the system. Thus, in the first four cases in which China was sued or …

Foreign Direct Investment, Investment Treaty Arbitration, And The Rule Of Law, Susan Franck

Articles in Law Reviews & Other Academic Journals

In the last decade, there has been a surge in the number of multi-lateral and bilateral investment treaties governments have signed; meanwhile there have been dramatic increases in the amount of foreign direct investment (FDI); and, more recently, the number of claims brought under investment treaties has spiked. This Article examines the relationship amongst these factors and is the first to review the emerging empirical economic literature investigating whether investment treaties achieve their goal of promoting FDI. The Article then specifically evaluates the impact that the procedural right to arbitrate investment claims plays in the process of promoting FDI and …

China's Participation In The Wto: A Lawyer's Perspective, Henry Gao

Research Collection Yong Pung How School Of Law

On 10 November 2001, China finally acceded to the World Trade Organization (WTO) after a marathon negotiation spanning 15 years. China's membership in the WTO raises interesting questions for both the WTO and China. For the WTO, the question is how to deal with China?a huge country of growing importance as a major global exporter and importer but is still in economic transition. For China, the question is how to implement the numerous obligations in the WTO accession package. This paper sets out by reviewing China's experience in the General Agreement on Tariffs and Trade (GATT) and the WTO. It …

Can China Promote Electronic Commerce Through Law Reform? Some Preliminary Case Study Evidence, Jane K. Winn, Song Yuping

Articles

The government of the People’s Republic of China (P.R.C.) has announced its intention to make China a global leader in innovation by 2020. Many Chinese business leaders share this goal. The primary focus of this national strategy is to transform China into an exporter of high-technology products based on Chinese designs rather than merely a low cost, high volume manufacturer of products based on technology developed in other countries.

This paper will examine the implications for this strategy with regard to the use of computerized management information systems by Chinese businesses, and its relationship to recent law reform efforts intended …

Procedural Issues In The Anti-Dumping Regulations Of China: A Critical Review Under The Wto Rules, Won-Mog Choi, Henry S. Gao

Research Collection Yong Pung How School Of Law

Since the World Trade Organization (WTO) was established, China his made large-scale efforts to shape its trade remedy system through legal and organizational changes. Through these changes, China could clarify the meanings of WTO anti-dumping provisions including the provision relating to the definition of domestic industry. Moreover, procedural disciplines on reviews were fortified in Chinese anti-dumping system. While the overall improvements to the trade remedy system of China are evident, definitions of several key legal terms, including the concept of related producers, the negligible import standard, and adjustment factors for a fair comparison between normal values and export prices are …

Chinese Views On Modern Marco Polos: New Foreign Trade Amendments After Wto Accession, Heng Wang

Research Collection Yong Pung How School Of Law

Since China’s accession to the World Trade Organization (WTO) at the end of 2001, it has made substantial, even heroic, efforts to change its laws and regulations. WTO accession has brought not only amendments to formal written laws, but greater transparency in government administration, enhanced opportunities for Chinese entrepreneurs, and more equal treatment between foreign and domestic business organizations. One crucial step forward is the Duiwai Maoyi Fa 2004 [Foreign Trade Act 2004] (“FTA 2004”), which amended the Duiwai Maoyi Fa 1994 [Foreign Trade Act 1994] (“FTA 1994”). With just over one year’s experience operating under this new foreign trade …

A Comparative Study On The Trade Barriers Regulation And Foreign Trade Barriers Investigation Rules, Junrong Song

LLM Theses and Essays

The Trade Barriers Regulation and Foreign Trade Barriers Investigation Rules are enacted in the European Union and China respectively. Both of them establish a procedure for the private sector to petition the government to challenge foreign trade barriers. Through the comparative study on the two pieces of law, this paper intends to dig out the similarities and differences between them and develop some suggestions for the improvement of them.

The "Race To The Bottom" Returns: China's Challenge To The International Labor Movement, Stephen F. Diamond

Cornell Law Faculty Publications

No abstract provided.

Sequencing, Acoustic Separation, And 3-D Negotiation Of Complex Barriers: Charlene Barshefsky And Ip Rights In China, Rebecca Green, James K. Sebenius

Faculty Publications

Taking the perspective of the lead U.S. negotiator, Charlene Barshefsky, this article details and analyzes the negotiations that took place in the mid-1990s between the United States and the People's Republic of China over intellectual property rights (IPR). Employing a "negotiation analytic" methodology, Charlene Barshefsky's actions are interpreted to suggest a number of promising approaches to managing the daunting complexities of trade and other negotiations: recognizing the multiparty aspects of apparently bilateral dealings and capturing them in a "deal diagram;" carefully assessing "barriers" to agreement; sequencing to build a winning coalition and overcome potentially blocking ones; "acoustic separation" of issueframes; …

Reforming China's Partnership Law: Achievements, Problems And Prospects, Hongbing Fan

LLM Theses and Essays

This thesis proposes some measures to reform China's partnership law after providing an overview of China's partnership development in a historical perspective. After a brief introduction in Part I, Part II reviews the historical development of partnerships since the founding of the People's Republic of China. Much emphasis is put on significant changes since 1978. Part III examines the basic structure and content of the present laws and regulations on partnership in China. Part V highlights the problems and limits facing China's partnership law. Measures are proposed in Part IV with detailed reference to the United States partnership law. As …

Poison And Dead Hand Pills, Markets For Corporate Control, And Implications For An Emerging Market Like China, Shueiqing Zhou

LLM Theses and Essays

In the past twenty years, the Chinese government has been adopting open door and economic reform policies. Because of historical, economic, legal, and cultural traditions, a modern corporation system is far from being established in China. There are lots of things that need to do to establish a perfect corporate system. This thesis reviews diverse interpretations of the function of poison pills in light of recent judicial decisions and underlying empirical evidence. It also reviews recent judicial decisions regarding the new version of poison and dead hand pill. The author discusses the recent trend of by-law restrictions in an attempt …

The United States Export Control Laws And Regulations, Minzhi He

LLM Theses and Essays

The current system of United States export controls began with the Export Control Act of 1949. Following World War II, Congress passed this legislation to establish a strategic embargo against communist nations in an attempt to control trade to further the national security and foreign policy interests of the West. In 1969, Congress reformed the export control laws by passing the Export Administration Act of 1969 – which contained no inherent limits. However, the increasing tension between the U.S. business interests and the national security and foreign policy interests made Congress once again alter the legislation and the Export Administration …

China And Gatt: Accession Instead Of Resumption, Ya Qin

Law Faculty Research Publications

No abstract provided.