Setback for China - wide rule of law

Article Abstract:

The risk that foreign investors in China will be subjected to local protectionism has increased with new rules that restrict the powers of the China International Economic and Trade Arbitration Commission. China's State Council has ruled that the Commission's long-standing exclusive authority over settling commercial quarrels be withdrawn when a local partner does not agree to go the Commission. The requirement for such disputes to go to local commissions, which have been set up in more than 90 cities, considerably increases the risk of local protectionism.

Column, Powers and duties, Protectionism, China. International Economic and Trade Arbitration Commission

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The fever cools

Article Abstract:

Foreign investors in China are pulling back after the frenzy of 1992-94, thanks to tighter reminbi credit, more restrictive regulations, and higher operating costs. The Chinese govt wants stricter oversight over foreign investment, and on June 27 issued guidelines to help direct it to particular sectors and regions. Investors say the system is less flexible but more transparent, and advisors say they see fewer but better proposals. Changing regulations and rising costs make planning and cost projection difficult.

Investments

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Looking next door

Article Abstract:

The lack of qualified Chinese managers to run foreign-owned companies has led to a poaching war. As more Chinese gain expertise in managing businesses over the next few years, the problems should ease. Meanwhile, foreign companies must cope with annual staff turnovers of nearly one-third as head-hunters lure personnel away with higher salaries. And Chinese-owned businesses have been particularly hard hit because they do not have the money to offer competitive salaries.

Employment, Labor market

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