Legal Aspects of International Trade and Enterprises

This report explores the legal aspects of international trade and enterprises, with a focus on China Construction Bank Corporation. It discusses the legislative regulatory framework, treaties, conventions, and agreements made by the bank. The report also provides an overview of the company and its subsidiaries.

Running head: REPORT 0
LEGAL ASPECTS OF INTERNATIONAL TRADE AND ENTERPRISES
MAY 6, 2019
STUDENT DETAILS:

REPORT 1
Executive Summary
The International trade law is set of laws, regulations, rules, and agreements that
administer trade between the countries. The International trade law develops the
regulations that is required to be adopted by the corporations. The International law has
emerged from the efforts to deal with conflicts amongst states, since regulations render
orders and help to mitigate critical conflicts. The corporations should follow this
international trade law in order to conduct businesses across borders. The following part
states the treaties, conventions, and agreements made by the China Construction Bank
Corporation. In this report, the legislative regulatory framework of China Construction Bank
Corporation is also assessed.

REPORT 2
Contents
Executive Summary...............................................................................................................1
Introduction............................................................................................................................2
Overview of Company............................................................................................................2
Legislature regulatory framework..........................................................................................3
Treaties, Conventions, and agreement.................................................................................4
Conclusion.............................................................................................................................5
References.............................................................................................................................6

REPORT 3
Introduction
The international law renders to improve the international trading, investment and
motivates the success. This is very important to know how to follow the numerous laws in
various markets and complete all the transactions and agreement without preventable
difficulties or issues (Young, 2016). A management point view on international trade law is
provided with focus on legal connotations of development in foreign markets. By the
international law, the organisation would be capable to have the knowledge of fundamental
legal principles included in the business conducted abroad. The corporation would also
avoid the official battles by identifying the basic rights and obligations of the buyers and
sellers structured by foreign rules. In this report, legislative regulatory framework of China
Construction Bank Corporation is evaluated. The following parts also discuss the treaties,
conventions, and agreements made by China Construction Bank Corporation.
Overview of Company
In China, China Construction Bank Corporation is the leading big joint stock commercial
bank. The headquarter of China Construction Bank Corporation is in Beijing. It has
fourteen thousand nine hundred twenty baking outlets. China Construction Bank
Corporation hired 352,681 employees worldwide. It has commercial banking branches as
well as subsidiaries in 29 nations worldwide such as Tokyo, Sydney, Seoul and
Johannesburg. The subsidiaries of this bank contain numerous sectors, such as leasing,
asset management, trusts, pension plans, life insurance, properties and casualty
insurance, and investment banking. CCB Corporation, Sydney Branch renders banking
services and products like term deposit; syndicated, bilateral, trade finance, club loan, and
guarantees of bank. There are 93324 employees in CCB Australia. This company renders
the services to various individual customers as well as corporate customers. It keeps long
lasting relationship with top enterprises in strategic industries in the economy of China. It is
devoted to establishing itself in the bank with high value formation ability. It attempts to get
the balance between long-run benefits and short-run benefits, and between the objectives
of business and social duties, to capitalize the values for customers, stakeholders,
societies and the connections (Ku, et. al, 2016).
Legislature regulatory framework
The Articles of Association (Articles) are framed by China Construction Bank Corporation,
according to the Securities Law, Company law, specific provisions, Commercial Banking
law, and other relevant rules, regulations and laws. The company follows the related
provisions of local security’s governing authorities wherever bank’s shares are listed. The
Articles should be the legally binding document, which administers the company and
actions of the company, and duties and rights between stakeholders and company, and
amongst stakeholders from the date while it comes into effect. In addition, the claims and
disputes in relation with company affairs arising from duties and rights mentioned in
Company Law as well as Chinese laws, rules and regulations should be settled by
arbitration as per Articles. The submission for arbitration should be deemed as an
authorization to the arbitral tribunal for public trials and declaration of the award (Chen,
Matousek and Wanke, 2018).
There are various countries, where the legislature regulatory framework and organisations
are not adequately strong to secure the rights related to intellectual properties of the
organisation. It is required by the company that it should carefully assess prior to taking

REPORT 4
entry in such markets as this may lead to theft of secret sauce of the entity therefore the
complete competitive advantages. There are certain legal factors, which are required to be
considered by CCB Corporation leadership at the time of taking entry into new markets.
These legal factors include Discrimination law, Employment law, Health & safety law,
protection of data, consumer’s protection, E-commerce, Anti-trust law in not Applic
industries and overall in nation, Intellectual property law and copyright law and patent law.
Additionally, the practices that do not comply with labour law and employment law, may
cause the damage health and safety of the workers of company (Tong, 2017).
The legislature regulatory framework of this bank is framed to make sure the compliance
with the regulations, rules, and laws issued by local administrative authorities and
international supervisory authorities, and devotion to each internal policy and process
recognised. This framework of company ensures the maintenance of integrity norms and
the moral values by the diffusion of the internal control culture to each worker of company.
It also ensures that the structure of internal controls is aimed at guaranteeing that they are
recognised, evaluated, reviewed, and measured with productivity and helpfulness. In
addition, the legislative regulatory framework of bank relates to the impacts of the amounts
on the equity framework and financial performance of the organisation, like the probability
of non-realization of tax credit and probable losses of civil claims as well as labour claims
(Flinchem, Patent Navigation Inc, 2017).
Further, the Bank continues to be devoted to the honesty, reliability and attaining the
global norms of modern corporate governance for continuously delivering the values to the
stakeholders as well as customers. It is considered by company that applying the new
corporate governance approaches is central to getting the objectives of becoming the
globally modest commercial bank. The controlling shareholders are strictly required to
conform to the rules, regulations, laws, and relevant regulations of the local securities
regulatory authorities, where the company’s shares are listed and the conditions and
processes rendered by the Articles when they recommend individuals for the managers or
administrators and directors of the Bank (Kim, Samsung Electronics Co Ltd, 2016).
Therefore, compliance of CCB Corporation with the rules, regulation, laws, norms and
complementary regulations applicable to the avoidance and recognition of the corruption,
money laundering, terrorist financing activities in all the subsidiaries of bank everywhere in
the world (Suzuki and Miah, 2017).
Furthermore, it is mentioned in AOA that the Bank should not take the Bank’s shares as
collateral for the pledge. Stakeholders of company should strictly bind by rules,
regulations, laws and necessities of administrative authorities, and serve the initial notice
to BOD if they give the Bank’s shares as securities for others or themselves. Article 71
states that the party committee supports the bank to be restricted by national laws,
regulations, and rules along with management system and supervision system of the
administrative authorities and encourages the complaint operations of this bank. The
China Banking Regulatory Commission is the significant administrative authority of China
Construction Bank Corporation, covering the international functions and its subsidiaries,
for every case except the laws related to anti-money laundering. In addition, it is required
by the bank to have external audit made in the International Financial Reporting Standards
as well as generally accepted accounting practices as per Chinese law. The bank is
required to circulate the financial statements per annum. Chinese laws levy numerous
prudential restrictions over the banks, such as the limits on transaction with associates and
big disclosures. The China Banking Regulatory Commission has powers to need the bank
to render data and to enforce sanction for failure to obey (Cullet, 2017).
Treaties, Conventions, and agreement

REPORT 5
The CCB Corporation and government of Singapore made the agreements by signing
recently to co-operate on infrastructure financing and push for the companies of China to
raise fund in the capital market of Iceland through the listing and obligatory problems. CCB
Corporation and IE Singapore, the legislative board under trade ministry of Singapore
signed the memorandum of accepting where the bank plans to render 30 billion Singapore
dollars or 22.18 billion dollars’ worth of funding the service for infrastructure project in
South Asian countries. These projects would be related to the President of China, Xi
Jinping’s One Belt, the road initiative targeted at establishing the trade and transport
across Asian countries and outside, the bank and IE Singapore said in the statement,
ahead of the joint press session or meeting with Singapore Exchange Ltd. It is also said by
them that the bank and Singapore Exchange Ltd. plan to work very closely to improve the
activities of raising funds by Chinese corporations in Singapore (Mahadevia, et. al, 2016).
Besides, the co-operation comes at the period while Singapore is facing the shortage of
initial public offering when Chinese companies are offering abroad to achieve the solid
international position through raising of funds, merger and acquisition. The bank and
Singapore Exchange Ltd would also focus over the opportunities for Chinese corporations
to issue offshore renminbi bond, commence merger and acquisition, develop cross-border
asset management services and other capital market activities in Singapore, bank and IE
Singapore said in declaration, utilising substitute name for yuan currencies of China
(Dempsey, 2017).
Further, The China Construction Bank Corporation and New Development Bank recently
signed the Memorandum of consideration over the Strategic Collaboration. Kamath,
President of New Development Bank and Wang Hongzhang, Chairman and Executive
Director of China Construction Bank Corporation signed the Memorandum. This
memorandum would render the two organisations with the structure for collaboration in the
various fields involving issue of bond and data exchange. The main purpose of this
agreement was long lasting and jointly helpful partnership. CCB Corporation provides the
help and support in rendering specialised underwriting services, proper and sufficient
credit lines and the commitments to make investment in first Financial Green Bond of New
Development Bank. The president of New Development Bank has confidence that with
support of CCB Corporation, New development bank must be in the best position for
issuing the Green Bonds in the upcoming periods (Lin and Zhang, 2009).
Furthermore, China Construction Bank Corporation took entry in the planned collaboration
pact with Ali Baba Group Holding Ltd. and associated Ant Financial Services Group.
According to this agreement, Ant Financial would be permitted to propose wealth
management product of the bank over the payment platform. In this way, as per this
agreement, selling bank wealth-management products by online platforms had restricted in
the banking regulations. The arrangements between Ant Financial and CCB may avoid it
by offering the products by wealth accounts in place of selling to the customer in direct
way (Bhala, 2015).
China Construction Bank and DES MOINES, Iowa-(BUSINESS WIRE) - Principal
Financial Group have made the Strategic Cooperation Agreement and memorandum of
knowledge to make the new asset management as well as pension partnership. The
purpose of this agreement is to create the opportunity for the American corporation to take
participation in evolving pension of China and asset management sector. Through entering
into this agreement, the bank and principal would reinforce the collaboration in pension
and asset management business through leveraging the particular proficiency and
resource’s benefits. These two corporations would look for setting up the joint business
platform with products development and marketplace discovery, with the wish of

REPORT 6
increasing the cross-market asset provision abilities, and client services and getting win-
win for these two companies (Carr and Stone, 2017).
Under the corporation Income Tax Law and the application rules, any gain realised on
transfer of note by holders who are considered as non-resident companies can be subject
to PRC enterprise income tax, in a case where these advantages are considered as
incomes resulting from source within the PRC. There remains uncertainty as to whether
the benefits realised over the transfer of the Notes would be treated as incomes derived
from sources within the PRC and be depending on PRC enterprise income tax. According
to an arrangements between the Hong Kong and mainland China for evasion of double
taxation, note holders who are citizens of Hong Kong, covering both corporate holders as
well as individual holders, would be exempted from PRC income tax on capital gain taken
from the exchanging notes or selling notes (Montgomery, et. al, 2018).
Conclusion
As per the above analysis, it can be concluded that the legal features of the foreign trading
address the complex international legislative framework that enables the business,
individual, group, and government of the country to efficiently and legally exchange the
related goods and services beyond the border. In this way, it can say that it is very
essential for a company to reduce the issues and difficulties regarding the intellectual
properties and to keep control on the assets and brand of the companies. The company
may remain competitive in a current market by observing relevant data regarding the race
and anti-trust law.

REPORT 7
References
Bhala, R. (2015) Dictionary of International Trade Law, (2015). New York: LexisNexis.
Carr, I. and Stone, P. (2017) International Trade Law. Cambridge: Cambridge University
Press.
Chen, Z., Matousek, R. and Wanke, P. (2018) Chinese bank efficiency during the global
financial crisis: A combined approach using satisficing DEA and Support Vector
Machines☆. The North American Journal of Economics and Finance, 43, pp.71-86.
Cullet, P. (2017) Differential treatment in international environmental law. New York:
Routledge.
Dempsey, A.L. (2017) Evolutions in Corporate Governance: towards an ethical framework
for business conduct. New York: Routledge.
Flinchem, E., Patent Navigation Inc, (2017) Enhancing bank card security with a mobile
device. U.S. Patent 9,569,772.
Kim, J.E., Samsung Electronics Co Ltd (2016) Display screen or portion thereof with icon.
U.S. Patent Application 29/489,385.
Ku, H.C., Trabona, D.M., Urdan, A.A., Wang, Y.H. and LaManna, M.H., Microsoft Corp,
(2016) Display screen or portion thereof with graphical user interface. U.S. Patent
Application 29/466,361.
Lin, X. and Zhang, Y. (2009) Bank ownership reform and bank performance in
China. Journal of Banking & Finance, 33(1), pp.20-29.
Mahadevia, J.H., Sankhla, S.V., Malek, S.M., Shah, P.N., Modi, N.N. and Fifadra, J.J.,
Cyberoam Technologies Pvt. Ltd. (2015) Display screen of a communications terminal with
a graphical user interface with drop down box. U.S. Patent Application 29/420,070.
Montgomery, M., Cook, D. and Zeckoski, R., Bank of America Corporation (2018) Secure
packaging software and deployment system. U.S. Patent Application 15/081,893.
Suzuki, Y. and Miah, M.D. (2017) China’s non-performing bank loan crisis: The role of
economic rents 1. In Banking and Economic Rent in Asia (pp. 71-85). Routledge.
Tong, D.D. (2017) The heart of economic reform: China's banking reform and state
enterprise restructuring. Routledge.
Young, M.A. (2016) International trade law compatibility of market-related measures to
combat illegal, unreported and unregulated (IUU) fishing. Marine Policy, 69, pp. 209-219.