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The Types, Causes, and dispute resolution mechanism of investment disputes in China for Taiwanese Businessmen

As the increase of direct investment in China, Taiwanese businessmen are encountering more and more disputes there, which makes this issue be worthy of attention. Among the various types of disputes, this present study focuses on investment disputes and attempts to figure out the types, causes and dispute resolution mechanism of investment disputes through the method of case study, literature review and expert interview. The conclusions of this study are as follows:
There are 6 common types of investment disputes that Taiwanese businessmen usually encounter in China: 1. Disputes on contributing investment; 2. Disputes on the right of management¡F3. Disputes on profit distribution; 4. Disputes on suspending equity joint-ventures or contractual joint-ventures; 5. Disputes on partners¡¦ illicit behaviors; 6. Disputes between Taiwan shares holders or anonymous investment disputes. It is revealed that the causes of investment disputes are 1. China¡¦s restrictions against foreign investment; 2. Taiwanese businessmen¡¦s unfamiliarity with the investment laws and regulations of China; 3. Taiwanese businessmen are not discreet in choosing their China partners; 4. Taiwanese businessmen tend to sign contracts and building cooperation constitutions carelessly.
Taiwanese businessmen resort to three kinds of dispute resolution mechanisms, including Adjudication, Mediation, and Arbitration, when encountering investment disputes in China. This study conducts a comparative analysis between these three mechanisms in terms of six dimensions, i.e. ¡§efficiency¡¨, ¡¨cost¡¨, ¡¨professionalism¡¨, ¡¨confidentiality¡¨, ¡§relationship maintenance¡¨ and ¡¨enforceability¡¨. The result shows that mediation and arbitration perform better than adjudication in almost all dimensions except the dimension of ¡§enforceability¡¨.
It is also suggested that Taiwanese businessmen prefer mediation to any other dispute resolutions in practice. Since arbitration is also an excellent dispute resolution mechanism, this phenomenon implies that arbitration is ignored by the Taiwanese businessmen. Therefore, the regulation, exercise and notice of China¡¦s arbitration are further demonstrated for Taiwanese businessmen in the final part of the study.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0713108-171826
Date13 July 2008
CreatorsTseng, Wei-Chun
ContributorsYung-Chih, Lien, Kuang S. Yeh, Chun-Tuan Chang
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0713108-171826
Rightsoff_campus_withheld, Copyright information available at source archive

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