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there exist quite significant differences in
interpretation of the same tax by different local
authorities. Equally problematic is the fact that local
governments impose different levels of charges at their
discretion. Local taxes such as real estate tax and vehicle licensing tax are varied frequently. In some special economic zones, road maintenance fees are charged on joint ventures and wholly foreign owned firms.
60.
(iii) Inadequacies of economic and commercial laws
In
Although China has stepped up its efforts to establish a proper legal framework for foreign ventures, several inadequacies in the legal aspect are impeding the institutionalization of China's new economic policies. the first place, several important laws have yet to be
enacted. For example, the Corporate Law, which specifies the rights and obligations of an enterprise, is still in the drafting stage. Second, even when the laws are enacted, their precise application will not become clear
until they have been thoroughly tested in the courts. It is also not clear whether a precedence set in a court in
one province or county will carry through to courts of
other provinces and counties. Third, in China, people are used to dealing with one another through administrative and personal channels rather than through the legal
framework for commercial transactions.
61.
(iv)
Inconsistent and shifting government policies
It is also observed that some of the policies towards joint ventures do not tie in well with one
another. For example, by law, a joint venture has autonomy in making decisions regarding its production, sales and employment. Although these plans have to be submitted to the relevant authorities, no Government
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