The Comparative Legal Study of Foreign-Invested Joint Ventures Between China and Laos

Foreign Investor, Joint venture, Comparative Legal between China and Lao PDR

Abstract

Both local and foreign businesses in many parts of the world, including China and Laos, often seek to enter into foreign-invested joint ventures to accomplish their business goals. This article compares two Chinese laws on foreign-invested joint ventures, including Law on Sino-Foreign Cooperative Joint Ventures and Law on Sino-Foreign Equity Joint Ventures, with Lao Law. It found that the legal flow of foreigners deciding to set up joint ventures in China is that they decide between EJVs and CJVs, they found and managed their joint ventures according to their selection. In contrast, the legal flow of foreigners deciding to set up joint ventures in Laos is that they need to make a joint venture contract under the Enterprise Law and Investment promotion Law of Laos and pay more attention to the Foreign Business Laws of Laos which will affect the ownership and control power of foreign parties in the joint venture contract.