Page 60 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
train X8044 from Hamburg, Germany marked the 10,000th guidance and oversight for Chinese enterprises that have
trip since the beginning of the freight rail’s operation in gone global and bring standards to their investments and
2011. For the past few years, trains have rumbled along the operations, he said. Chinese enterprises will also be guided
route, taking garments, auto parts, chemicals and other to abide by local laws, regulations and international
Chinese goods to European consumers, while bringing practices, Kong added. Chen Jiping, executive vice-
back European food, machinery and equipment, as well as president of the China Law Society, said enterprises will be
timber products (Xinhua., Xi Gives). the biggest beneficiaries of enhanced legal cooperation
in building the Belt and Road. The situation of politics
Updated Policy Changes and the rule of law for countries involved in the Belt and
Road is complicated and diversified. “Different countries
According to Chinese State Councilor and Foreign might have different laws and policies for foreign direct
Minister Wang Yi, China will deepen legal cooperation investment,” he said. There are remarkable differences in
with countries and regions along the Belt and Road. He national security, anti-monopoly policies, environmental
said that since it was proposed, the BRI had achieved protection, labor, taxation and sectoral restrictions
successful outcomes, developed beyond expectations between countries, he said. “It is not a pure economic
and been welcomed by the international community. drive for businesses to go global, and legal support is
“This is because the cooperation upholds the principle of indispensable,” he said (Xu, Beijing Will).
equality and mutual benefit, win-win results, openness
and inclusivity, integrates with development strategies Challenges
of other countries, and is supported by rules and laws,”
Wang said, vowing to improve the legal system, deepen Still, it’s not always full steam ahead on the Belt and
legal exchange and cooperation under the BRI. “China Road. Occasional pothole occurs. In December 2018,
will contribute to implementing the Belt and Road legal China’s Ministry of Foreign Affairs dismissed as “not true”
cooperation research program, and support the legal numerous reports that a key port in Mombasa was at risk of
ability and international legal personnel training along the being seized by Beijing over unpaid debts. Despite Beijing
Belt and Road” (Xinhua, China to Deepen). Wang later said and Nairobi’s vehement denials, concerns over the loans
that China will work to refine the legal support system of speak to a growing fear in many developing countries that
the Belt and Road to enable better settlement of disputes their governments, in rushing to cash in on China’s BRI,
and foster a business environment governed by the rule have left themselves overextended, with Chinese state-
of law. A dispute settlement mechanism featuring lawsuits, owned companies ready to snap up ports, railways and
arbitration and mediation will be established at an early other key infrastructure across the globe should debtors
date. A security network of treaties should be established default. Five years into the BRI, the sheen is also coming
to fit into the development of the Belt and Road, with off the project in Beijing amid ongoing trade problems
efforts made to fill blank areas and update relevant treaties, with the US and concerns over future funding and returns
he said (Xu, Legal Support). on an increasingly unwieldy list of overseas investments.
For critics of the BRI, Sri Lanka’s Hambantota port is the
Vice-Foreign Minister Kong Xuanyou said China will perfect example of the risks developing countries are
make efforts to ensure Belt and Road cooperation remains taking on with their Chinese loans. In December 2017,
transparent, adheres to market principles and abides by Beijing acquired a 99-year lease to the port – located in a
laws and regulations. Kong said the Belt and Road is a key strategic position on the Indian Ocean – in return for
transparent initiative that follows the principle of extensive forgiving some of the billions of dollars the South Asian
consultation, joint contributions and shared benefits: country owed China. The move sparked fears China would
“Planning and implementation of Belt and Road projects use similar defaults in other countries to acquire a host
have been discussed by the participants in the open, and of new infrastructure, with both potential economic and
China will not impose its unilateral agenda on relevant military benefits—leapfrogging rivals in the region such as
countries.” Kong said all eligible enterprises, regardless of India and the US. China has vigorously pushed back against
their background, can be involved in building the Belt and such criticism, saying it is subjected to a double standard.
Road. The Chinese government has taken problems that While boosters for the BRI remain plentiful, and the project
arise with the development of the initiative seriously, and is not on the verge of failing any time soon, there are signs
will seek proper solutions together with relevant countries that a shift is underway. The number of contracts signed
through planning and consultation. China will step up in 2018 was down on previous years, and country’s big
60
train X8044 from Hamburg, Germany marked the 10,000th guidance and oversight for Chinese enterprises that have
trip since the beginning of the freight rail’s operation in gone global and bring standards to their investments and
2011. For the past few years, trains have rumbled along the operations, he said. Chinese enterprises will also be guided
route, taking garments, auto parts, chemicals and other to abide by local laws, regulations and international
Chinese goods to European consumers, while bringing practices, Kong added. Chen Jiping, executive vice-
back European food, machinery and equipment, as well as president of the China Law Society, said enterprises will be
timber products (Xinhua., Xi Gives). the biggest beneficiaries of enhanced legal cooperation
in building the Belt and Road. The situation of politics
Updated Policy Changes and the rule of law for countries involved in the Belt and
Road is complicated and diversified. “Different countries
According to Chinese State Councilor and Foreign might have different laws and policies for foreign direct
Minister Wang Yi, China will deepen legal cooperation investment,” he said. There are remarkable differences in
with countries and regions along the Belt and Road. He national security, anti-monopoly policies, environmental
said that since it was proposed, the BRI had achieved protection, labor, taxation and sectoral restrictions
successful outcomes, developed beyond expectations between countries, he said. “It is not a pure economic
and been welcomed by the international community. drive for businesses to go global, and legal support is
“This is because the cooperation upholds the principle of indispensable,” he said (Xu, Beijing Will).
equality and mutual benefit, win-win results, openness
and inclusivity, integrates with development strategies Challenges
of other countries, and is supported by rules and laws,”
Wang said, vowing to improve the legal system, deepen Still, it’s not always full steam ahead on the Belt and
legal exchange and cooperation under the BRI. “China Road. Occasional pothole occurs. In December 2018,
will contribute to implementing the Belt and Road legal China’s Ministry of Foreign Affairs dismissed as “not true”
cooperation research program, and support the legal numerous reports that a key port in Mombasa was at risk of
ability and international legal personnel training along the being seized by Beijing over unpaid debts. Despite Beijing
Belt and Road” (Xinhua, China to Deepen). Wang later said and Nairobi’s vehement denials, concerns over the loans
that China will work to refine the legal support system of speak to a growing fear in many developing countries that
the Belt and Road to enable better settlement of disputes their governments, in rushing to cash in on China’s BRI,
and foster a business environment governed by the rule have left themselves overextended, with Chinese state-
of law. A dispute settlement mechanism featuring lawsuits, owned companies ready to snap up ports, railways and
arbitration and mediation will be established at an early other key infrastructure across the globe should debtors
date. A security network of treaties should be established default. Five years into the BRI, the sheen is also coming
to fit into the development of the Belt and Road, with off the project in Beijing amid ongoing trade problems
efforts made to fill blank areas and update relevant treaties, with the US and concerns over future funding and returns
he said (Xu, Legal Support). on an increasingly unwieldy list of overseas investments.
For critics of the BRI, Sri Lanka’s Hambantota port is the
Vice-Foreign Minister Kong Xuanyou said China will perfect example of the risks developing countries are
make efforts to ensure Belt and Road cooperation remains taking on with their Chinese loans. In December 2017,
transparent, adheres to market principles and abides by Beijing acquired a 99-year lease to the port – located in a
laws and regulations. Kong said the Belt and Road is a key strategic position on the Indian Ocean – in return for
transparent initiative that follows the principle of extensive forgiving some of the billions of dollars the South Asian
consultation, joint contributions and shared benefits: country owed China. The move sparked fears China would
“Planning and implementation of Belt and Road projects use similar defaults in other countries to acquire a host
have been discussed by the participants in the open, and of new infrastructure, with both potential economic and
China will not impose its unilateral agenda on relevant military benefits—leapfrogging rivals in the region such as
countries.” Kong said all eligible enterprises, regardless of India and the US. China has vigorously pushed back against
their background, can be involved in building the Belt and such criticism, saying it is subjected to a double standard.
Road. The Chinese government has taken problems that While boosters for the BRI remain plentiful, and the project
arise with the development of the initiative seriously, and is not on the verge of failing any time soon, there are signs
will seek proper solutions together with relevant countries that a shift is underway. The number of contracts signed
through planning and consultation. China will step up in 2018 was down on previous years, and country’s big
60
