Labor law for foreign investment enterprises in China

Research output: Chapter in Book/Report/Conference proceedingChapterResearchpeer-review


With the passage of the Law of People's Republic of China on Sino-Foreign Equity Joint Ventures in 1979, China opened its door to foreign investors.
In the past two decades, foreign investment steadily increased, with the concomitant inflow of foreign capital, technology, and management expertise. As recent as in 1997, there were 21,001 direct foreign investment
projects signed, totaling about US$51 billion. Of these foreign direct investment projects, there were 9,001 equity joint ventures (43 percent), 2,373 cooperative joint ventures (11 percent), and 9,602 wholly foreignowned
enterprises (46 percent). Apparently, foreign investors have rushed to China for two major reasons.First, China's huge potential market has made it imperative for foreign enterprises to establish their presence as early as possible. Second, the cost of production in China has been relatively low, as compared to those of other developed countries. Especially in the early years, enterprises in labor intensive industries would like to benefit from China's cheap labor force
and the relatively unregulated labor market.
Original languageEnglish
Title of host publicationReform, Legitimacy, and Dilemmas
Subtitle of host publicationChina's Politics and Society
EditorsWang Gungwu, Zheng Yongnian
Place of PublicationSingapore
PublisherSingapore University Press & World Scientifc
Number of pages26
ISBN (Electronic)978-981-4492-26-3
ISBN (Print)981-02-4441-X
Publication statusPublished - 2000
Externally publishedYes


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