The highest law issued a new regulation of foreign enterprises disputes to be standardized

Commercial News (reporter Li Zijun) The Supreme People's Court announced and implemented the provisions of the Supreme People's Court on several issues concerning the trial of disputes involving foreign-funded enterprises (a) (hereinafter referred to as "provisions"), in the future, the disputes arising in the process of establishment and alteration of foreign-funded enterprises will be more clear and unified. According to the Supreme People's court spokesperson Sun Jun, with the rapid development of foreign-funded enterprises, the number of disputes has increased, the last two years accounted for more than 20% of the number of foreign-related civil and commercial cases, the provisions will focus on the establishment of foreign-funded enterprises in the process of creating disputes arising from the law　　It mainly includes the validity and legal consequence of unapproved contract, equity confirmation, equity transfer, equity pledge and so on. Regarding the validity and legal consequences of unapproved contracts, Sun military pointed out that according to the provisions of our laws and administrative regulations, the agreements and contracts signed in the course of establishment and alteration of foreign-funded enterprises should be approved by the examination and approval authorities. Prior to this, the people's Court for the law and regulations required by the administrative examination and approval of the contract is generally invalid, and the denial of any of the terms of the contract can be performed, the parties only bear the consequences of invalid contracts, the liability has great limitations. After the implementation of the provisions, a legally established contract, even if the lack of approval of this entry into force, the parties also have a form of binding, either party can not be revoked or discharged, especially in the contract to facilitate the entry into force of the terms of the declaration of obligation to perform. Otherwise, "can only make the dishonest parties evade the contract responsibility, to cultivate fair, honest foreign market disadvantage."