Law Commons^™

Investment And Export Contracts In The People’S Republic Of China: Perspectives On Evolving Patterns, Stanley B. Lubman

Hong Yen Chang Center for Chinese Legal Studies

The remarkable economic reforms begun in the People's Republic of China (PRC) in 1979 have made possible transactions between Chinese and foreigners that were previously unthinkable. But the reforms have also caused, and are likely to continue to cause, dislocations and uncertainties which often impair Sino-foreign commercial relationships as they are embodied in contracts. This article discusses two different types of contracts, contracts to establish enterprises in China with foreign direct investment (investment contracts) and contracts to purchase Chinese products for export (export contracts). It further comments on why these contracts often cannot be implemented according to their terms for …

Equity Joint Ventures In China: New Legal Framework, Continuing Questions, Stanley B. Lubman

Hong Yen Chang Center for Chinese Legal Studies

Foreigners participating in equity joint ventures in the PRC since such investments were authorized in 1979 have encountered a variety of problems. New legal institutions have been established to provide a framework for joint ventures but their reach and interpretation of the new rules in practice are still often uncertain. Changes in policy have affected, and will continue to affect, the operation of both joint ventures and the new legal rules. Potential investors need contractual protection against changes in laws, regulations and policies which may affect the joint venture. Some specific issues of importance to foreign investors in China include …

Technology Transfer In China: Policies, Practice And Law, Stanley B. Lubman

Hong Yen Chang Center for Chinese Legal Studies

The legal and practical aspects of technology transfer are of increasing importance as China's international economic relations expand. Chinese legislation on aspects of such transfers are beginning to appear and this paper discusses relevant regulations particularly the Technology Import Contract Regulations of May 1985. Practical issues include Chinese interest in up-to-date technology and comprehensive technical documentation, valuation of the technology to be transferred, payment terms, the terms and costs of technical training, and acceptance tests of the products manufactured using the transferred technology. Patent infringement and protection of proprietary information are also issues of concern to companies involved in technology …

Emerging Functions Of Formal Legal Institutions In China's Modernization, Stanley B. Lubman

Hong Yen Chang Center for Chinese Legal Studies

In 1977 when China's leaders dedicated themselves to the four modernizations, they consciously decided to reestablish formal legal institutions as part of their ambitious plan of growth. In light of China's legal history since the Communist victory in 1949, this decision is significant. Since 1949 law had borne the heavy imprint of politics; since the late nineteen-fifties, the Chinese leadership had shown little concern for the fate of formal legal institutions; during the Cultural Revolution, the legal system had virtually disappeared. But since 1977, despite fluctuations in economic policy the attitudes of the leadership toward law, repeatedly echoed by lower …

New Developments In Law In The People's Republic Of China, Stanley B. Lubman

Hong Yen Chang Center for Chinese Legal Studies

Recently, Chinese leaders have begun to promote the development of legal standards andformal legal institutions for China. In this article, Mr. Lubman explores the background and current status of the role of law in China and assesses its relationsho to China's economic development, domestic politics, and international economic relations. Mr. Lubman suggests that students of Chinese law must create new theoreticalperspectives to study the new developments.

On Understanding Chinese Law And Legal Institutions, Stanley B. Lubman

Hong Yen Chang Center for Chinese Legal Studies

Our unfamiliarity with Chinese legal institutions and policies toward law causes misunderstanding of the role of law in the People's Republic of China. The present unimportance of the formal legal system has deep historical reasons. As China's economy becomes more complex, regularity should increase, although it will remain controversial. In commercial contracts with the West, custom performs the role of law.

Mao And Mediation: Politics And Dispute Resolution In Communist China, Stanley B. Lubman

Hong Yen Chang Center for Chinese Legal Studies

We lack much essential knowledge, not only about Chinese Communist legal institutions, but about Chinese society generally – how it is organized, how power is distributed and wielded, and the nature of even the most ordinary relationships. Such ignorance is dangerous, especially when China and the United States, and their perceptions of each other, remain tragically far apart. An analysis of China's institutions for resolving disputes can teach much about its dominant values and authority relationships.

This Article examines the resolution of disputes between individuals in China, relying on documentary sources and on interviews conducted by the author in Mandarin …

The Unrecognized Government In American Courts: Upright V. Mercury Business Machines, Stanley B. Lubman

Hong Yen Chang Center for Chinese Legal Studies

What right have I, as the King's Judge, to interfere upon the subject of a contract with a country which he does not recognize?

Lord Eldon's words, written in 1823, have been echoed more than once by American judges, who have been as troubled as Eldon by problems complicated by diplomatic nonrecognition. Twentieth-century wars and revolutions have required American courts to decide whether unrecognized governments, entities created by them, their representatives, or their assignees could sue in domestic courts, often on matters of private right. Frequently, too, the courts have been perplexed by the effect of nonrecognition on the application …