On the Co-existence of Guanxi and a Formal Legal System in the PR China – An Institutionalist Approach

1. Introductory Remarks China’s decision to apply for membership in the WTO and her eventual accession to the said institution highlights the Chinese efforts not only to play an active part in the world economy but also her willingness to establish a new, highly refined supra-individual system of order. The integration of the Chinese economy into the global economic system requires an institutional framework that supports market transactions on a global scale. The development of a legal system that ensures the availability of enforceable property rights beyond the boundaries of personalistic networks and adheres to global standards and therefore constitutes a logical and indispensable element of China’s internationalisation process.