China enacts landmark law on corporations

China has announced the enactment of a so-called 'Corporate Law' that lays the groundwork for transforming all state-owned enterprises into either shareholding or limited liability companies. Observers believe that the proposed measure provides a legal framework for the entry of the private sector into the public sector. The enactment of the law follows the announcement by the Communist Party in Nov 1993 that they support a transition to a market economy in the country.