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 connection...