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Global Enterprise and Innovation in China - Dissertation Example

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The research paper “Global Enterprise and Innovation in China” looks at China, which has developed to become one of the most preferred foreign investment destinations. Many foreign investors are interested in investing and performing business in China…
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Global Enterprise and Innovation in China
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Download file to see previous pages China has a good and established a legal condition that encourages the foreign investment of different companies and protects their interest to invest in their country. By various rules, regulation, legislation and joint agreement the country has strengthened their legal systems. In order to spread their business in the whole world, China is taking part in many global trade activities. For maintaining a good legal environment condition for business, China has repeatedly modified the existing law and conducted new laws. Moreover, 30 government departments have changed their regulation towards law in approximately 2300 files. By these changes in law and policies on foreign investment activities, China has steadily developed a legal environment which is convenient for foreign business interests. For implementing the law there has been a series of actions and procedures regarding the management, establishment, purchase, investment, reinvestment, liquidation, reform and termination of the foreign company. With the help of those policies and guidelines, China seeks to attempt foreign capital entry. In the year 2002, China established ‘Directory of Guidelines for Foreign – Capital Investment’ for motivating a foreign company to invest in their construction industry, agriculture industry, and technology industry and resource development sector. China also provided the permit to the telecommunication industry, insurance industry, financial industry, service industry, and foreign trade sectors. ‘The General Agreement of Science and Trade’ showed 142 services and business enterprises which are grouped under 11 activities. Foreign investors always want a sound legal condition because it allows the high return on investment and they want a system which allows them to withdraw their investment capital according to their strategic plan. There are various methods by which the investor can withdraw their capital investment which is: initial public offer, equity transfer, management takeover, liquidation and purchase share back (Feng, 2010). ...Download file to see next pagesRead More
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