Chinese Legal Systems: Differences in Culture, Censorship

Chinese Legal Systems
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Background
The ease of doing business depends on the political /legal structure, business practices, and business environment. China has opened up to the world, but foreign businesses still face challenges while doing business because of legal restrictions and bureaucracy. Improving the financial channels, respecting human rights and the rule of law are crucial to attracting foreign investors. The media plays a crucial role in rooting out corruption and highlighting cases of corruption to facilitate the rule of law, but restrictions have also constrained the media’s ability to play a more active role in advocating for transparency of the regulatory authorities (Mo, 2013, p. 229). The case for accountability and transparency in the legal structure and business is that more people grow confident to invest in the country since they are assured that there will not face unnecessary hurdles., Uncertainties, involving trade disputes, make investors wary to put their money in the country, where there is no guarantee that the rule of law is respected and applicable to all without discrimination.
Differences in culture
Besides legal concerns, western and Chinese values differ that American investors need to understand how this affects the way of doing business and relations. Even though, the American system is individualistic, there are checks and balances. Differences in values does not mean that either to American or Chinese values are superior, but rather divergence in perceptions that affect decision making (Feldman, 2014, p. 9). For instance, the Chinese show higher trust for personal relations unlike Americans and the democratic systems pushes for rights, but the hierarchical Chinese system supports developing strong bonds. Americans have to adapt the business culture to thrive in China, while considering business laws when making investment and trade resolution decisions.
Contracts
Even though the rule of law has been in law, in practice this is not the especially when dealing with contractual obligations. The Chinese are a group-oriented society unlike the U.S. which is individualistic and there are differences in expectations about the role of each party to a contract (Kwock, James & Tsui, 2013, p. 58). Contracts are mostly formalities and there is no much value attached to them since there are associated with expected rights and obligations compared to the US where contractual obligations are legally binding. It is then more difficult to enforce these contracts in China, where maintaining relations and avoiding conflicts take precedence. According to Kwock, James & Tsui ( 2013, p. 58), another likely issue is the approach to conducting business regardless of whether there are contracts, since the US and other western societies are more direct in approaching deals.
Understanding cultural differences and perceptions when conducting business is essential to avoid misunderstandings, since the Chinese culture is based on Confucianism. The place of relationships in business is more prominent since enforcement of laws is not strong compared to the U.S (Kwock James & Tsui, 2013, p. 58). The assumption that people have to have connections and rely on close family members and friends influences the way of doing business. This presents a problem when negotiation since it is more difficult after initially turning down an initial proposal. Since the US society is more transaction-oriented when people conduct business making agreements is straight forward as parties in a contract engage directly to affirm the details of a contract (Kwock James & Tsui, 2013, p. 58).
Government discrimination against foreign companies
There is a need to be informed how local and national laws affect business since the government discriminates against foreign companies, while the courts rarely side with them. China is a member of the WTO, but has not removed discriminatory trade practices, since there is lack of transparency and accountability in the legal/ political structure. To further complicate matters, is that there is little commitment to the rule of law, and this is likely to stall business operations. State sponsored enterprises are still the dominant force in the country and they are given preferential treatment including concessions, better loan terms and are allowed to conduct business with fewer restrictions. This has resulted in private enterprises being at a disadvantage, more so for foreign companies (CECC, 2015, p. 252).
At other times, even when the laws are not applied irregularly, these are cases of the government using the media to draw attention to perceived ills of foreign corporations. The government has been quick to respond to media reports corruption within government ranks and influence the narrative that they are doing more to fight the vice (Mo, 2013, p. 223). Since the media and internet communication are regulated by the government mains control on narratives on business practices. This may extend to media campaigns to differentiate China’s ideology with the West. At other times, legitimate business concerns raised by foreigners may be ignored by the Chinese government. Criticism of business practices including labor laws and human rights can affect businesses negatively. There remains a challenge how to reconcile differences in labor practices, since investors and owners of western corporations’ desire clarity on business practices and the legal structure. Government interference and lack of judicial independence make it difficult to operate without facing bureaucracy and unnecessary government oversight on business operations.
Discrimination against foreign companies extends to the way the government deals with trade disputes and imposes sanctions and fines that...