INTdiss_For Rey Writer

During its thirty years of communist rule, China prohibited foreign investment and restricted foreign trade. Then, China enacted the Law on Joint Ventures using Chinese and Foreign Investment in 1978. A landslide of foreign investments made in response to the country’s market potential, market performance, improved infrastructure, enormous resources, and strategic position has fueled China’s subsequent transformation. Frustrating this process, however, has been the politics of China's elaborate bureaucracy, as well as its ill-defined legal system and pervasive corruption. Historically China has relied upon "the rule of man" and the belief that legal rights are derived from the  power of the individual. Upon jointing the WTO, China agreed to continue to reform its business environment and to move toward transparent, rule-based, enforcement-oriented standards. However, the business reality is far from the WTO obligations specifically in the continued controversy over the protection of intellectual property. Coming full circle, today's fully-owned Chinese enterprises are themselves becoming global investors, both by acquiring foreign firms and investing in foreign lands. There are compelling economic reasons to invest and not to invest in China.

Your task in this Discussion Board forum is to consider the following:

What sort of operating safeguards would you advise a company to adopt to better manage the risks of China's legal environment? Draft an initial response utilizing resources to support your statements.