22 Pages Posted: 3 Oct 2008 Last revised: 16 Oct 2008
Date Written: September 1, 2008
China's entry into the world economy will affect not just how we act but how we think. It will affect especially what "business," "business law," and "business corporation" come to mean both in a transnational setting and in American law. The nature of American business law today still stands in the way of a wholly profit-maximizing approach to law or the world in general. But there is strong pressure, consistent with a general tendency in Western thought, to make business and corporate decision-making entirely manipulative and calculating and to eliminate the force of human value from it. This Youde Lecture traces the development of the business entity and the conception of its purpose in American business law - including late-twentieth century discussion in the American Law Institute - and describes contemporary efforts to change the legal statement of corporate purpose. It observes that the twentieth century struggle between "socialism" and "capitalism" did not end in utter elimination of the influence of the ideals that might be expressed in "socialism," including its Chinese form. The development of China's economic institutions and China's participation in world trade may have the surprising effect of blunting contemporary pressure to change American business law, and ultimately making the way we think fifty years hence more humane than it might otherwise have been.
Keywords: Business law, corporate law, company law, business corporation, profit maximization, wealth maximization, American Law Institute, Chinese corporate law, business in China, World Trade Organization, capitalism, socialism, globalization, corporate social responsibility, law and economics, corporate co
JEL Classification: A14, F00, F30, K00, K22
Suggested Citation: Suggested Citation
Vining, Joseph, China, Business Law, and Finance - Accession to the World Trade Organization (September 1, 2008). U of Michigan Law & Economics, Olin Working Paper No. 08-015; U of Michigan Public Law Working Paper No. 123. Available at SSRN: https://ssrn.com/abstract=1276348 or http://dx.doi.org/10.2139/ssrn.1276348