Law Leading the Market
This chapter discusses the laws that grant foreign investors legal status to operate in the Chinese economy. The joint venture (JV) law was the first corporate law in China. It created legal economic entities in a system consisting only of state-owned enterprises (SOEs) and non-legally defined organizations like urban collectives. Laws that govern foreign-invested enterprises (FIEs) and pertain to economic contracts predated the passage of China's primary corporate statute. In 1994, the Company Law took effect and became the centerpiece of Chinese law governing corporations.
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