Online Survey: China managers show a striking lack of confidence in their courts
HONG KONG, May 16, 2013 /PRNewswire/ — There is a crisis of faith among senior managers about how commercial law is enforced on the ground in today’s China, according to “China’s Current Commercial Law & International Competitiveness” — a survey recently conducted by Global Sources’ (NASDAQ: GSOL) Chief Executive China Online, China’s premier management portal.
A high percentage of respondents do not believe their enterprises can get a fair hearing in a domestic court; one half would prefer to see international commercial disputes adjudicated overseas or in Hong Kong S.A.R.; and concerns over the legal process in specific areas of the mainland often lead managers to nix investment plans.
Confidence in Short Supply
“If you are faced with a commercial dispute, how confident are you that the court where your business is located will enforce the law impartially?”
Over half the respondents have little or no confidence that a commercial dispute will be treated fairly by their local court.
The survey also explores the attitudes and perceptions of China managers toward sensitive topics such as the importance of establishing “guanxi” within the judicial system, the phenomena of bribery of civil servants or biased treatment by the prosecuting authorities, and economic losses suffered due to flawed foreign or domestic legal systems.
“The experts agree that China’s legal system is a ‘work in progress’ and China’s new generation of government leaders has put a high priority on improving transparency in the courts,” comments Craig Pepples, Publisher of Chief Executive China. “For our part, we hope to play a constructive role in providing a venue where professional managers can frankly discuss the challenges they face in doing business in the current legal environment. We designed this survey to help kick off that discussion.
“Then at the end of May, Chief Executive China Online will feature exclusive coverage of an international, invitation-only conference in Hong Kong and Guangzhou: ‘Legal Institutions, Trade & Investment in China‘. Experts from overseas and China will analyze how a country’s commercial law environment enhances — or reduces — its competitiveness in attracting foreign investment and trade.”
The survey’s findings are particularly significant, notes Pepples, because of the demographics of the 978 respondents: six out of 10 hold a position of director or higher; they represent 30 of China’s 34 provinces and administrative regions, and two-thirds work in one of four key industrial sectors (manufacturing, import-export, IT/e-commerce or real estate/construction).
Lead sponsors for “Legal Institutions, Trade & Investment in China” to be held from May 27 to 31 in Hong Kong and Guangzhou, are the Hinrich Foundation and the Lingnan Foundation. The event is co-organized by the Faculty of Law of the University of Hong Kong, the School of Law of Sun Yat-sen University, U.S. — Asia Law Institute (New York University), and the Maureen and Mike Mansfield Foundation.
The survey is free for download at Chief Executive China Online at http://www.ceconline.com/TEAMSITE/PDF/law_graphics_E.pdf.
In 1992, Global Sources launched Chief Executive China. It is now a multiple-channel medium — with website, monthly magazine, and iPad and mobile phone editions — serving a community of more than 3 million registered executives in China who seek insight into global management theory and practice.
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About Global Sources
Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China.
The core business facilitates trade between Asia and the world using English-language media such as online marketplaces (GlobalSources.com), print and digital magazines, sourcing research reports, private sourcing events, trade shows, and online sourcing fairs.
More than 1 million international buyers, including 95 of the world’s top 100 retailers, use these services to obtain product and company information to help them source more profitably from overseas supply markets. These services also provide suppliers with integrated marketing solutions to build corporate image, generate sales leads and win orders from buyers in more than 240 countries and territories.
Global Sources’ other businesses provide Chinese-language media to companies selling to and within Greater China. These services include online web sites, print and digital magazines, seminars and trade shows. In mainland China, Global Sources has a network of more than 30 office locations and a community of more than 4 million registered online users and magazine readers of its Chinese-language media.
Now in its fifth decade, Global Sources has been publicly listed on the NASDAQ since 2000.
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