Page 10 - 2019 Special Report on the State of Business in South China
P. 10
We are also pleased to see Guangzhou City 仿ç?è¯?º§????¢ç????为å????????ºæ????ä¸?¤®?¿å?
was once again voted the favorite destination for ä¸?????ä½???½ï?ç»??ä¸??¥ï????å°?????????¶ç´§å¼?
investment from over 35 cities across China. This is å±??¿ä?ä¼????ç¾?¸è´¸æ??????æ¤ä??????»¬å¿?¡»??¥½??
important because Guangzhou is one of the anchoring å¤???¿å?ä¸??次紧å¼???¿ç?å½¢æ?以å?ä¸??ä¸???½ä??´å?
cities of the new Guangdong-Hong Kong-Macao ?½ç?????°ä?è½??ç«???¸?½ä¸å¤??åº??é¡»å??½æ????ä¼?
Greater Bay Area (GBA). A majority of the companies ä¸???½æ?èµ???§è?ä¼??ä¸??å±??æ³?³»ç»??æ¸???????å±?
remain optimistic towards the future development of ?¸æ?ç³»ç?å¿?¡»ä¸??å¤??å½±å?ï¼???½å?è§??æ£å????ä¾??
the GBA. Continued government backing, infrastructure ?§æ???
support, and regional economic development are
generally considered the top three important factors æ¤è?
to its success, which cannot be accomplished without
the implementation of the Outline Development Plan ??¤¼ï¼?
for the Guangdong-Hong Kong-Macao Greater Bay Area,
released on Feb 18, 2019. Good things are definitely ???·�?�?�
happening for foreign business in South China, but ???ç¾????? ä¼??
much more still needs to be done. 2017年奥??????ä¿??å¹³å? ?·å???
?±è?è´????¹³å¥??ç»??å¥??审å???????
As the President of a Chamber representing more ?¨å?大å? 访é?å???
than 2,300 members, it is clear to me that the vast ?¿æ?é¾??æº? ?»è?
majority of problems foreign companies are facing in
China are not related to central government issues. Many
of these problems are a direct result of unfair treatment
by low-level municipal governments and the fact that
rarely is there a proper channel or venue where a foreign
entity can get a fair hearing and treatment according to
the rule of law. Too often the line between a company
and the government is not just blurred but totally erased
by lower-level municipal judicial systems when foreign
business entities have legal problems with their joint
venture counterparts. Basically, the old saying ??ou can??
fight city hall?? becomes the rule of law.
Currently, very few channels exist where foreign
companies can seek arbitration outside the control
and influence of the low-level municipal government.
These same entities often have financial connections
to the domestic party in question. With a free license to
kill given to these low-level municipal governments??
and their right as the company executive, judge, jury
and enforcer??omplaints by foreign companies are
not treated fairly. Under the current process, any issue
elevated to a higher-level Chinese government by our
companies is sent by the higher-level to the very culprit
lower-level government for adjudication.
10
was once again voted the favorite destination for ä¸?????ä½???½ï?ç»??ä¸??¥ï????å°?????????¶ç´§å¼?
investment from over 35 cities across China. This is å±??¿ä?ä¼????ç¾?¸è´¸æ??????æ¤ä??????»¬å¿?¡»??¥½??
important because Guangzhou is one of the anchoring å¤???¿å?ä¸??次紧å¼???¿ç?å½¢æ?以å?ä¸??ä¸???½ä??´å?
cities of the new Guangdong-Hong Kong-Macao ?½ç?????°ä?è½??ç«???¸?½ä¸å¤??åº??é¡»å??½æ????ä¼?
Greater Bay Area (GBA). A majority of the companies ä¸???½æ?èµ???§è?ä¼??ä¸??å±??æ³?³»ç»??æ¸???????å±?
remain optimistic towards the future development of ?¸æ?ç³»ç?å¿?¡»ä¸??å¤??å½±å?ï¼???½å?è§??æ£å????ä¾??
the GBA. Continued government backing, infrastructure ?§æ???
support, and regional economic development are
generally considered the top three important factors æ¤è?
to its success, which cannot be accomplished without
the implementation of the Outline Development Plan ??¤¼ï¼?
for the Guangdong-Hong Kong-Macao Greater Bay Area,
released on Feb 18, 2019. Good things are definitely ???·�?�?�
happening for foreign business in South China, but ???ç¾????? ä¼??
much more still needs to be done. 2017年奥??????ä¿??å¹³å? ?·å???
?±è?è´????¹³å¥??ç»??å¥??审å???????
As the President of a Chamber representing more ?¨å?大å? 访é?å???
than 2,300 members, it is clear to me that the vast ?¿æ?é¾??æº? ?»è?
majority of problems foreign companies are facing in
China are not related to central government issues. Many
of these problems are a direct result of unfair treatment
by low-level municipal governments and the fact that
rarely is there a proper channel or venue where a foreign
entity can get a fair hearing and treatment according to
the rule of law. Too often the line between a company
and the government is not just blurred but totally erased
by lower-level municipal judicial systems when foreign
business entities have legal problems with their joint
venture counterparts. Basically, the old saying ??ou can??
fight city hall?? becomes the rule of law.
Currently, very few channels exist where foreign
companies can seek arbitration outside the control
and influence of the low-level municipal government.
These same entities often have financial connections
to the domestic party in question. With a free license to
kill given to these low-level municipal governments??
and their right as the company executive, judge, jury
and enforcer??omplaints by foreign companies are
not treated fairly. Under the current process, any issue
elevated to a higher-level Chinese government by our
companies is sent by the higher-level to the very culprit
lower-level government for adjudication.
10

