With China's rise as a new economic power, the economic and political relationship between Australia and China comes into a new area of development. China's need for capital, raw materials, high technology, and modern management skills has opened a range of opportunities for Australian industry and commerce.

However, before making a substantial investment, an Australian investor needs to decide on which business structure is the most suitable for making the investment, a business alliance or a subsidiary. This book provides the first comprehensive analysis of the following issues:

• What are the advantages and disadvantages of the different business vehicles?
• Can the products of the new business be sold in the Chinese domestic market?
• Can invested capital be repatriated back to Australia?
• What are the tax implications in both China and Australia of setting up the new business?
• If a business alliance is established, how does the investor retain control over the new business entity?
• Does China have a sound political and legal environment which ensures the rights of a foreign investor and provides economic and legal certainty for the foreign investment activities?

Investing in China gives general treatments of all possible investment vehicles and provides background information on Chinese law and culture. However, its focus is on the problems facing Australian investors and Chinese participants when establishing joint ventures. This book will make an excellent contribution to the mutual understanding between Australian and Chinese business people.

Tables of Contents

Introduction

CHAPTER 1: An Overview of Foreign Direct Investment in China
China's unique situation
Policies and practices of foreign investment
China, an increasingly important target
For Australian foreign investment
Some practical aspects of doing business in China

CHAPTER 2: The Chinese Legal System in Transition
The legal system in traditional China
The Chinese legal system in transition

CHAPTER 3: The Protection of Intellectual Property
Trademark law
Patent law
Copyright law and computer software protection
Protection of technology transfer

CHAPTER 4: Selecting an Appropriate Business Structure
Selecting business structures in Australia
Selecting business structures in China

CHAPTER 5: Taxation Consequences of Different Business Structures
The forms of income and jurisdiction to tax
Taxation of profits by China
Taxation of profits by Australia

CHAPTER 6: Management and Marketing
Management aspects
Marketing aspects

CHAPTER 7: Profits and Capital: (Non-Taxation Aspects)
Remittance of profits
Repatriation of capital

CHAPTER 8: Dispute Resolution
Mediation
Choice of law
Arbitration
Litigation

CHAPTER 9: Conclusion

Bibliography
Index

"The author has... written a useful guidebook for investors interested in China. Her main concern is to highlight China's desirability as a destination for investment, but also to indicate the necessity of considering different cultural, social and legal systems in evaluating investment choices. Her work is easy to read and she provides a very useful table in her conclusion, which reiterates, in summary form, the conclusions she had reached about each of the business structures. Federation Press should be congratulated on the publication of this useful text."

-- International Trade & Business Law Annual, May 2003