《Trade Contracts》.pdf

8/20/2012 Trade and Trade Contracts Doing Business in China 2012 Vivienne Bath • Foreign trade system - history • Chinese companies requiring authorization to trade with foreigners • Strict limits on foreign companies operating in China • Import/export restrictions • Foreign exchange • Foreign currency debt (including trade credit) • Tax • Foreign trade contracts: law of contracts – domestic and international Overview 2 Doing Business in China 2012 Vivienne Bath 1 8/20/2012 • Controls over Chinese companies: • Scope of permitted business operations – business licence • Early separation of internal and external trade • Strict licensing system • Limited number of “window” companies with rights to engage in foreign trade • Chinese manufacturers no direct access to foreign exchange Background 3 Doing Business in China 2012 Vivienne Bath • Foreign companies – no right to operate in China except by establishment of FIEs • Enforcement through licensing and foreign exchange system • Exports and foreign trade encouraged • FIEs able to export directly • FIEs also permitted to sell own products within China • FIEs obliged to balance own foreign exchange Background 4 Doing Business in China 2012 Vivienne Bath 2 8/20/2012  Chinese accession to WTO on 11 December 2001  Commitments