China Seeks Help to Pursue Certain Foreign Investors

China is seeking cooperation from foreign law enforcement establishments to help pursue foreign investors who leave the country without properly liquidating their assets and winding up their business operations in China. According to Xinhua News, the number of foreign investors who have left China without properly winding up their China operations is on the rise in recent years. Most of these investors operate small and labor-intensive businesses. When the foreign-invested businesses become unprofitable, some investors simply disappear and leave behind their capital equipment along with unpaid debts and unpaid wages.

On December 19, 2008, the Chinese government issued an official policy to address the abandonment issue created by these foreign investors. The official policy is entitled "Implementation Guidelines Regarding Irregular Withdrawal of Foreign Investment and Cross-Border Litigation to Protect Chinese Interests." This implementation guideline is jointly