Legal Issues of International Financial Leasing in Service Trade
|School||East China University of Politics and Law|
|Keywords||Service Trade International Financial Leasing Legislation Perfection|
Financial leasing is a marginal industry related to trade, finance, law, accountancy, insurance, security and tax. Founded in 1952 in the United States of America, financial leasing develops very fast entering many fields including the high tech industry and becomes the second largest financing method just after loan. The economic globalization enables financial leasing to become a sunrise industry. In contrast with the rapid development of financial leasing, the laws relatively lag behind. Especially after American Enron Company using fake financial leasing, resulted in bankrupt case causing American financial leasing industry’s drawback and world financial vibration, the legal issues of financial leasing caught the attention from domestic and overseas legislative body and scholars. As the transitioning period for China’s WTO accession is drawing to an end, not only can foreign investors establish a wholly foreign owned financial leasing enterprises, but also will foreign banks be allowed to develop financial leasing business from December 11, 2006. At present the second draft of Financial Leasing Law is asking for opinion nationwide. The author is in charge of foreign invested financial leasing enterprises approval, from this special point of view, she notices that more and more foreign invested financial leasing enterprises are starting their businesses in China and developing prosperously while the domestic financial leasing enterprises’businesses are not so satisfactory. So she studies Unidroit Convention on International Financial Leasing and GATS carefully, reads many updated materials about international financial leasing, uses International Law’s theory and methods, trying to explain how to use the Unidroit Convention on International Financial Leasing for reference and apply the GATS principles to our nation’s Financial Leasing Law. In this way, the author tries to contribute to the process of unification of the law of international financial leasing, and the amalgamation work of legislation of financial leasing in our country and the outside world, to create an equal and harmonious legal development environment for both domestic and overseas financial leasing companies, and to push forward the development of financial leasing industry.In Chapter One of this thesis, international financial leasing historical development and different countries’different definition about it are expounded. The fundamental features and the function of international leasing in financial service trade field are analyzed. It is aimed to provide a better understanding of this new business and to study it in order to resolve the legal issues in international financial leasing. Unidroit Convention on International Financial Leasing establishes the legal status of financial leasing. It is the first written law defining financial leasing in the world. Chapter Two probes into the application scope and disciplines of Unidroit Convention on International Financial Leasing and explains all parties’rights and obligations, so as to provide the theory and practice basis for the establishment of the legal frame work of international financial leasing.International financial leasing is listed in the GATS—General Agreement on Trade in Services, which provides the basis for resolving legal issues in the area of international financial leasing. Chapter Three researches on the principles of GATS and Annex on Financial Services and analyzes how to apply these principles to international financial leasing practice and law making so as to provide theoretical suggestion of how to realize our commitment to WTO.Chapter Four illustrates China’s commitments to WTO in the financial leasing field, how China realizes these commitments, and the current situation of domestic and overseas financial leasing enterprises. At present the second draft of Financial Leasing Law is asking for opinion nationwide, so the author analyzes the break through of this draft comparing to the past laws and regulation and expresses revision comments and suggestions.