How to deal with the relationship between China's local governments and foreign-funded enterprises

One, China's local government and foreign-funded enterprise relations of the current situation and problems

Reform and opening up before, China followed the model of the former Soviet Union, the government and business is basically a "father and son" relationship. 1978, the state of the original enterprise management system of market-oriented reforms, resulting in a lot of new economic components Since 1978, the state has been reforming the original enterprise management system, resulting in many new economic components and the coexistence of many kinds of government-enterprise relationships. The relationship between local governments and foreign enterprises in China is more like the relationship between traffic police and drivers, which is the relationship between supervising and being supervised. This is in line with the goal of China's economic system reform, that is, the establishment of a modern enterprise system, so that enterprises have become real market players, but the reality of the relationship between the government and enterprises is changing and intricate, China's local government to foreign-funded enterprises is largely "traffic police and drivers" relationship, but "traffic police" by the traditional customs of the past. "by the traditional habits of the past, not to create a reasonable traffic order services, but always try to "drivers" beyond their own jurisdiction, and "drivers" in order to get convenient, but also to the "traffic police". The "driver", in order to get the convenience, also to the "traffic police" to carry out public relations and bribery.

(I) The current situation of foreign-funded enterprises in China

First of all, foreign-funded enterprises have been in a dominant position in some important industrial fields. ① On August 31, 2005, Cheng Jinpei, an academician of the Chinese Academy of Sciences and vice minister of the Ministry of Science and Technology, pointed out in his report at the fourth Chinese Scientists Forum that China relies on imports for 100 percent of its fiber-optic manufacturing equipment, 85 percent of its integrated circuits, 70 percent of its textile manufacturing equipment, 80 percent of its petrochemical equipment, and almost 90 to 100 percent of its high-end medical equipment.

A report published in 2006 by the Development Research Center of the State Council noted that by the end of 2005, foreign companies had majority control of assets in 21 of the 28 key industries that China had opened up. Seven of China's eight largest beverage companies have been swallowed up by Coca-Cola or Pepsi; three of the four large laundry detergent companies have been eaten up by foreign firms; and the joint-venture rate in beer companies with annual output of more than 5 million tons has exceeded 70 percent.

Secondly, the unification of the two taxes marks a change in the economic environment for foreign enterprises investing in China. After China's accession to the WTO, the domestic market is becoming more and more mature; China's integration into the process of economic globalization accelerated, China's economic system reform and the legal system environment is also more in-depth and perfect, and gradually with international standards. The complete unification of the two taxes, strict environmental protection policies, perfect quality standards, standardized human resource management, legal labor relations, and the repositioning of the "market for technology" introduction policy, etc., all signify that China's market economy is entering a brand new period, and for the "super-national treatment" enjoyed in the early stage of China's reform and opening up, China's economic reforms and legal environment have become more in-depth and perfect, and gradually converged with the international standards. For foreign-funded enterprises that enjoyed "super-national treatment" during the early stage of China's reform and opening up, their status will gradually converge with that of China's private enterprises and state-owned enterprises, which will have the same power and assume the same obligations to realize fair competition.

With the growing maturity of China's market economy and further integration with the international market, foreign-funded enterprises are facing new challenges while gaining new development opportunities. According to some experts, the merger of the two taxes marks the end of the era of market-for-technology exchanges, and foreign-funded enterprises are faced with new choices while their "super-national treatment" comes to an end. The development trend of the two tax mergers and the strict constraints of environmental protection make multinational companies need to weigh the pros and cons more before investing in China. Those companies that try to transplant the capital-intensive manufacturing industries in the sunset industries, which are 'high in energy consumption, high in material consumption, and high in pollution' to China, may become 'losers and losers' with the increase of costs. The increase in costs may turn out to be an inappropriate business choice 'at the expense of others and oneself', while the improvement of China's independent innovation capability further squeezes the survival space of these backward investment enterprises.

Finally, after 30 years of reform and opening up, China has entered a critical period of policy adjustment for foreign-funded enterprises. We should summarize the experience of the previous phase of policy on foreign-funded enterprises, face up to the problems existing in foreign-funded enterprises at this stage, and rationalize the relationship between the local government and foreign-funded enterprises so as to make China's economy develop better and faster.

(II) Problems of China's local governments in dealing with the relationship with foreign-funded enterprises

First of all, foreign-funded enterprises are not well organized by trade unions, and their employees have no advocates for their interests. First, some local governments in investment promotion favoritism and accommodation. Some grass-roots local governments are eager to attract investment, a focus on investment targets, in the negotiation and consideration of all aspects of the interests of the investor, excessive favoritism and accommodation, and even to not build trade unions, sacrificing the interests of workers at the expense of attracting investment. Because local governments have not been "put in the right place," they have been unable to rationally and effectively integrate labor-management relations, and conflicts and disputes between labor and management have arisen in individual areas. Although the trade union law gives all levels of trade union organizations the corresponding rights, but trade unions and other functional departments related to the protection of the rights and interests of workers groups, in the local government is generally in a non-core position, the independent exercise of power is not efficient, and its law enforcement behavior is susceptible to a variety of administrative interventions, which appeared to be the "bottom line" is not enough problems.

Secondly, the representative offices of foreign-funded enterprises have many problems. ② Many foreign-funded enterprises are involved in violations or illegal behavior, according to the industry and commerce department survey, foreign-funded enterprises in China representative office of the most common illegal problem is to engage in business activities. 1983 promulgated and implemented the "on the permanent representative offices of foreign enterprises to register the administrative measures" in the clear provisions of the "foreign-funded enterprise representative offices should be engaged in non-direct business activities," the representative office. representative organizations". In reality, many representative offices of foreign-funded enterprises are engaged in business activities. An executive of a foreign-funded enterprise being investigated by the Bureau of Industry and Commerce said that the representative office of a foreign-funded enterprise does not have a business function, but the representative offices of various foreign-funded enterprises are almost all in business. "The representative office can not operate, there is a good bargain to pick up, that is, you can not pay taxes, but also to avoid a lot of trouble in the country. Once it becomes a sales company, it will have to pay a lot of taxes", a foreign-funded enterprise executives said the reason why many foreign-funded enterprises' representative offices operate illegally. The current tax laws and regulations stipulate that no business tax and enterprise income tax will be levied on representative offices that do not have business income or service income. It's hard to count how much direct and indirect economic loss the permanent representative offices of foreign-funded enterprises cause to China every year, said the above-mentioned person from the Foreign Investment Bureau of the State Administration for Industry and Commerce.

Finally, the rights and interests of employees of foreign-funded enterprises are harmed . ③ First, some domestic agencies, seeing the rapid development momentum of the labor dispatch business of foreign-funded enterprises, carry out the labor dispatch business without approval and do not apply for social insurance for the dispatched employees in violation of the relevant provisions. Some foreign-funded enterprises in order to evade labor security laws and regulations, illegal agency enterprises to hire employees, resulting in some dispatched to foreign-funded enterprises employees can not be the same pay for the same work with their regular employees, often do not get compensation after work-related injuries, in the case of these dispatched employees rights and interests of the damage, the illegal agency enterprises can not protect the rights and interests of the employees in accordance with the law, and will also be a partnership with the foreigners, to deceive and hoodwink the employees of foreign enterprises. Second, some foreign speculators enter the Chinese market gold rush, low-cost employment of Chinese employees to play black labor, not in accordance with China's laws and regulations and employees sign labor contracts, social insurance procedures.

In the face of the above problems, the local government can not turn a blind eye, but should be based on the current situation of foreign-funded enterprises in China, and constantly adjust and amend our policies and regulations on foreign-funded enterprises.

Second, in the face of the new challenges of international economic competition in our local governments and foreign-funded enterprises how to achieve a mutually beneficial **** win

China is in a critical period of historical opportunity, in such a large country as China to achieve the great rejuvenation of the Chinese nation, there is no ready-made solutions, we are independent development, or integration of the wisdom of all mankind to solve the problems that need to be our choice. The 17th CPC National Congress put forward the idea of "raising the level of openness", which, as I understand it, is a strategic approach to openness at the level of "integrating the wisdom of all mankind to solve China's development problems". This policy is an important guiding principle for our future relations with foreign-funded enterprises, and is also a requirement for the implementation of the scientific concept of development. According to this approach, foreign-funded enterprises are a force to be reckoned with in the process of building socialist modernization, and only through a harmonious relationship between local governments and foreign-funded enterprises can we achieve a mutually beneficial ****-win situation for both sides.

(a) further deepen the reform of the economic system, change government functions, improve the level of openness for foreign-funded enterprises in China to create an equal, mutually beneficial, cooperative and harmonious environment

Enterprises are the main body of the market economy, the government is the main body of the macro-regulation, the two have *** the same goal, but also have their own irreplaceable division of labor. Invisible hand and visible hand, second-hand unity, complement each other, is to lay a harmonious relationship between government and enterprises is an important cornerstone. In the current conditions, the government and enterprise harmony of the initiative party in the government, the focus is the administration according to law, the key point is the local government to create a social environment to accelerate the development of scientific development, innovative development, harmonious development. At the same time, enterprises need to operate in accordance with the law, standardized development, innovation and creativity, and assume the corresponding social responsibility. From the local government level, the focus needs to be grasped from the following five aspects:

1, accurate positioning is the first premise

To create equality, mutual benefit, cooperation, harmonious relations between the government and enterprises, the first need to set up a premise that is in the market economy and the rule of law in social conditions, the local government and the enterprise on their respective roles should have an accurate understanding. The functions of the local government is very clear, is to fulfill the "economic regulation, market supervision, social management, public **** service" four major responsibilities. Enterprises are the main body of the market, social cells, wealth creators, the pursuit of profit, risk avoidance is its vocation, abide by the rules, dedication to society is its obligation. Both in increasing the total amount of social wealth, promote social development and progress on the same goal, the local government to develop planning, clear guidance, to provide services and protection for enterprises, urging enterprises to comply with laws and regulations, and promote fair competition and coordinated development of various types of market players; enterprises to comply with laws and regulations, without prejudice to the interests of the public **** the premise of the pursuit of profit maximization, and as far as possible, to assume the necessary social responsibility. necessary social responsibility.

Established on the basis of the above positioning of fair, orderly and harmonious relations between government and enterprises, equality, that is, the local government and enterprises are a pair of legal status is balanced between the main body of activity. Mutual benefit, that is, local governments and enterprises have a natural honor and disgrace and **** connection. Cooperation, that is, the specific behavior of local governments and enterprises need to cooperate with each other, the formation of tacit understanding.

2, administration by law is the first responsibility

In the current situation, mainly by the constraints of the level of economic and social development, and promote economic development is still the central task of the local government is obliged to. This brings a concern, that is, the local government in promoting economic development in how to act, is in accordance with the provisions of the law as a legitimate, or beyond the scope of the law as a chaotic. With the deepening of the enterprise property right system reform, most of the places have solved the problem of the government and enterprises are not separated, or at least from the legal understanding of the level to solve this problem. Therefore, whether local governments administer according to law in the economic field has a more direct and profound impact on the legal, economic and business sectors, and is also more realistic. In this sense, the administration according to law is to create a new type of harmonious government-enterprise relations of the first responsibility, is the core, is the key. Because of this, on improving the level of economic and social legalization, promote the healthy development of the economy, comprehensively promote the administration according to law, accelerate the construction of the rule of law government, it is extremely important and particularly urgent.

Administration according to law, the need to solve the core problem of two, one is what the local government should do, that is, what is the legal function of the local government; the second is what the local government should do, that is, what is the procedure of the local government administration. Only through the organic unity of content and procedure, and in accordance with the law, can we realize the true meaning of "administration according to law". In the economic field, relative to the enterprise, the local government must seriously study its own behavior in the market economy under the conditions of which belongs to the overstepping, lack of position and misplaced, which behavior in the rule of law under the conditions of which belongs to the procedural malpractice, abuse of power. All these behaviors, will hinder the normal legal relationship between government and enterprises, and ultimately damage the interests of enterprises and the image of the government, hindering the construction process of the rule of law society, therefore, must be effectively overcome and resolved.

3, service first is the first idea

If the enterprise to maximize profits as the ultimate goal of the market economy is a natural law, then, the local government to pursue the highest service should be a modern economic and social development is an inevitable requirement. In the history of the development of the West, people once thought that the best local government is the least control of the local government, but when the discovery of the market mechanism also has the failure of the time, people began to generally believe that the government to provide the best service is the best government. In China, with the rapid development of the socialist market economy, society and local governments at all levels of their own requirements and aspirations for the construction of a "service-oriented government" is also increasing day by day. There is no doubt that the local government consciously take the initiative to create a new type of harmonious government-enterprise relations in the process, service first should be the first concept must be set up, especially for the economic field needs to be made by the local government to make all the efforts, must first consider and safeguard the legitimate rights and interests of the market subject, in the law permits and does not harm the interests of the public under the premise of the maximum degree of promotion of the enterprise to maximize the profits of the goal of achieving. Realization.

4, to create an environment is the starting point

To create equality, mutual benefit, cooperation, and harmonious relations between government and enterprises, the local government in addition to the relative micro level to provide quality services for enterprises, the more long-term, the most fundamental is the local government to create a superior environment for the development of enterprises. Strictly speaking, the provision of services and create an environment is cross-cutting, interdependent, but from a broader understanding of the level of the four basic functions of the local government in the final analysis is to "create an environment". Therefore, to create an environment is the local government in creating a new type of harmonious government-enterprise relations in the landing point. Our local government and domestic enterprises in the relationship between the smooth, is bound to be conducive to the development of foreign-funded enterprises in China.

5, reform and innovation is the first power

Only reform can give birth to vitality, only innovation will create the soul. Equality, mutual benefit, cooperation, and the creation of a harmonious relationship between government and enterprises, also depends on reform and innovation.

(2) local governments should strengthen the supervision of foreign-funded enterprises, strengthen the local government and foreign-funded enterprises equal communication, to achieve mutual benefit **** win

In the early stage of reform and opening up, some local governments in order to bring in foreign-funded enterprises, to give them a lot of preferential policies, foreign-funded enterprises in China is actually enjoying the super-national treatment, and in many cases, the local government of foreign-funded enterprises to supervise the existence of a lack of bottom line Phenomenon. Foreign-funded enterprises have been involved in a number of incidents in China, such as: KFC's "Sudan Red", Colgate's "carcinogenic ingredients", Lucent's "commercial bribery", Sony's "defective cameras", and the "problematic camera". Sony's "problematic camera", "KFC labor dispatch dispute" and so on. Why is this so? Maybe there are a lot of questions, and the answer is not yet certain, but a reality is inescapable, which is related to the lack of supervision by the local government and the lack of punishment after the event. How to regulate, I think we can start from the following two aspects:

1, state-owned enterprises and foreign-funded enterprises to be treated equally

Have been, our law enforcement agencies are the main focus of the supervision of enterprises on state-owned enterprises, and gradually establish and improve a variety of institutions, rules and regulations and monitoring mechanisms, and achieved results, but ignored the foreign-funded enterprises. Because multinational enterprises are operating under the aura of "international standards" and have a good corporate image and reputation, people have reason to believe that these enterprises are law-abiding enterprises, but the facts show that even in a relatively perfect and standardized environment, multinational enterprises still have the possibility of economic crimes. The nature of capital is to realize value appreciation and to chase profits, and multinational enterprises are often criticized as watercress, living by profit. Multinational corporations in China to invest heavily, under the grandiose slogan, often accompanied by a number of social welfare activities, but China's potentially huge market for them to temptation is obvious, to some extent, multinational corporations bribery and other economic crimes, the harm is greater than the local enterprises. And regardless of this compliance with the "unspoken rules" of behavior to the social concepts and culture of the impact brought about by the multinational enterprises in the global activities of the convenience, will make the related economic crimes more covert.

All of this should make our law enforcement agencies change their mindset to include foreign enterprises in their regulatory vision, introduce mechanisms such as enhanced education and encouragement of reporting, and provide for appropriate incentives and penalties.

Some people may worry that strengthening the supervision of foreign-funded enterprises will scare away investors, in fact, this worry is redundant, no enterprise is willing to their own internal problems, multinational enterprises is the pursuit of profits, they know very well, once the economic crimes themselves will be the victim of the problem once the revelation, not only will greatly affect the company's public image, the customer will also tend to be because of avoidance of suspicion. The local government is also a help to the foreign-funded enterprises to strengthen the supervision and prevention of economic crimes.

2, the regulatory process should focus on solving the most prominent contradictions

First, we should regularly check and supervise the social security situation of foreign-funded enterprises. Supervision involves whether all foreign-funded enterprises are insured; whether foreign-funded enterprises pay social insurance for foreign-funded employees on time; whether the base and proportion of social insurance paid by foreign-funded employees are in line with social security policy; whether foreign-funded employees can enjoy the relevant social insurance treatment. It is necessary to strengthen the supervision of social security when foreign businessmen leave or divest. This includes whether the foreign-funded enterprise completes the formalities of terminating the labor relations and social insurance of the employees of the foreign-funded enterprise in accordance with China's policies and laws; whether the employees of the foreign-funded enterprise have problems in making up for the payment of social insurance, or in defaulting on the payment of social insurance; and whether the employees of the foreign-funded enterprise can still enjoy the relevant social insurance treatment (e.g., work-related injuries, medical treatment period). It is necessary to increase the penalties for foreign-funded enterprises that violate the social insurance policies and regulations for employees of foreign-funded enterprises in China. There is a law must be followed, illegal must be corrected, may be effective in restraining the behavior of foreign-funded enterprises, so that it attaches importance to China's foreign enterprise employees social insurance policies and regulations, do not evade the legal obligation to pay employee social insurance.

Secondly, the phenomenon of abnormal withdrawal of foreign capital is on the rise, and an effective mechanism should be established to deal with it. As the international financial crisis continues to spread, the possibility of the withdrawal of foreign capital in China has increased, in which the phenomenon of abnormal withdrawal has risen. In addition to adjusting the policy of utilizing foreign capital, we should also establish a relevant mechanism to effectively mitigate the impact of abnormal withdrawal of foreign capital. (3) such as in January 2008, 103 Korean enterprises "fled" Shandong in the middle of the night, the use of this way of disinvestment of foreign investors in the early stage of the sneaky transfer of assets in full, and then choose to "overnight disappearance", leaving behind a labor disputes, construction projects, and the sale of the contract dispute A large number of problems. South Korea's high degree of economic dependence on the outside world, "fleeing in the middle of the night" is a reaction to the uncertainty of China's economic development judgment at the time, but on the other hand, the abnormal disinvestment also has its own special reasons, the most important is that the local government's attitude towards the introduction of foreign investment and supervision problems. Excessive favoritism for foreign investment has allowed foreign investment to come and go as it pleases, and the supervision of foreign-funded enterprises has been in vain.

Finally, the supervision of labor in foreign-funded enterprises should be strengthened. Since the beginning of the implementation of reform and opening up, in order to promote the needs of economic and social development, the state and local governments have given more favorable measures to foreign enterprises. The scope and content of these concessions are quite extensive, including labor. In view of the popularity of foreign brands accumulated by their previous high quality, coupled with the pressure to attract investment, local supervision of foreign enterprises is more lenient. Pragmatically speaking, the implementation of such strategies at a particular historical stage has legitimacy, and the expansion of foreign-funded enterprises in the Chinese market has also contributed to the country's economic growth, but none of this can be a reason for foreign-funded enterprises to escape regulation. The profit-making impulse of the enterprise itself means that regardless of whether it is a domestic enterprise or a foreign-funded enterprise is homogeneous in nature, all trying to exchange the smallest possible input for the largest possible gain, certain domestic agency enterprises illegally engaged in the foreign-funded enterprises in the labor dispatch business, KFC and other foreign enterprises to engage in the "labor employment to engage in the double standard," calling for the government to strengthen the supervision of foreign enterprises. Foreign enterprises to strengthen the supervision of labor.

3, strengthen the supervision at the same time, the local government and foreign-funded enterprises to communicate on an equal footing, to achieve mutual benefit * * * win

China's development can not be separated from the participation of foreign-funded enterprises, the local government and foreign-funded enterprises should be held by the two sides of the principle of mutual benefit and win-win situation, Mozi said that "cross-border benefits", the local government has the interests of the government, the local government in dealing with foreign-funded enterprises, the local government has the interests of the government, the local government in the handling of foreign-funded enterprises. The local government in dealing with foreign-funded enterprise relations, not only to think of foreign-funded enterprises to promise you what you also want to think about what you can do for foreign-funded enterprises, research between your local government and foreign enterprises which *** with the interests of the topic, around the interests of these *** with the same point of going to the equality of communication, to achieve a mutually beneficial **** win. First of all, we should establish equal and efficient communication channels in accordance with the law, and constantly improve the communication mechanism. Secondly, we should guide foreign enterprises to actively participate in China's socialist construction, so that the interests of foreign-funded enterprises and China's industrial policy in line with the realization of mutual benefit **** win.