2006 Fiscal Year Final Research Report Summary
Research on management of dispute risks for the Japanese companies doing business in China
| Project/Area Number |
17530091
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
New fields of law
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| Research Institution | REITAKU UNIVERSITY (2006)
Aomori Chuo Gakuin University (2005) |
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Principal Investigator |
KAJITA Yukio REITAKU UNIVERSITY, The College of Foreign Studies, Professor, 外国語学部, 教授 (20382591)
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| Project Period (FY) |
2005 – 2006
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| Keywords | International Law / China's Law / ADR / Legal Risk / Personnel Management / Corporate Governance |
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| Research Abstract |
We studied the following problems and made them clear.
First, we typified about the trouble of foreign companies doing business in China, considered the cause of trouble, and revealed where the legal risks lie.
The trouble can be typified to followings.
(1) The problem in China's political and economic structure, or in the development process of economy
(2) The problem in legal system
(3) The law consciousness of the Chinese
(4) The problem caused by the animosity or sense of caution to foreign companies
(5) The endemic problem between Japan and China
Second, we studied the law consciousness of the Chinese. The right consciousness appears as dispute and a lawsuit when a contract is not implemented. Now the lawsuit is increasing in China.
Third, we examined the subject of dispute resolution method. There are many reasons why foreign companies may wish to avoid China's court or arbitration centers. China's court system still suffers from corruption and lack of competence on the part of some judges. Similarly, there is also some of the practical problem in arbitration. Though saving on legal fees and court costs are among the key advantages of mediation, several other benefits make it an attractive option. One of the most important is that parties are more likely to comply with a voluntary settlement agreement than with a dispute award or judgement.
Fourth, we examined the personnel labor problem. Labor contract and collective labor contract are becoming more important.
Fifth, we considered the future subject of doing business in China. Corporate governance, corporate social responsibility is becoming more important.
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