Learning from Your Rival? A Surprising Convergence of Chinese and American Corporate and Securities Laws

Despite the increasing tension between China and the United States, a student of Chinese law will be surprised at the increasing similarity between corporate and securities laws in China and the United States. As many Chinese twists as there are, the overall trajectory of China’s corporate and securities laws appears to be evidently moving closer toward their American counterparts. I will trace the recent changes in Chinese laws, regulations, and judicial interpretations and decisions to substantiate this point. At the same time, I will also present an analytical framework to explain this legal convergence in an era of decoupling between China and the United States. My explanation is based on two key factors: legal professionalism and political populism. Understanding the convergence of Chinese corporate and securities laws to their American counterparts will enable us to make a better-informed assessment of the uniqueness of China’s corporate governance and securities regulation paradigms.