Starting in late 2008, some foreign investors, particularly Korean manufacturing owners in China, abandoned their manufacturing plants, leaving behind large amount of loans taken out from Chinese banks, debts and unpaid workers.
To address this issue, four ministries jointly issued "Working
Guidelines on Cross-border Pursuit of Liability and Initiation of Legal
Action by Relevant Interested Parties in Connection with Abnormal
Withdrawal from China of Foreign Investors" to penalize those illegal withdrawal of foreign investors from China.
In China, there is an increased hostility toward foreign investors after more and more pull-out of foreign owners of manufacturing plants, providing products and goods to markets outside China. The pull-out left the burden to the government to pay for the salary owed by the foreign owners.
Chinese government had been open to foreign investors for decades. What has happened in China in the past few months is a wake up call. This legal document will help protect both the government and employees and send an warning to foreign investors.
