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Though the current Company Law of the People’s Republic of China was revised twice, such revisions were not a comprehensive review of the Company Law, but only focused on the supervisory board of a wholly state‐owned companies and hi‐tech joint stock limited companies. In addition, it has been pointed out that the future revision of the Company Law should be made, for the enforcement of the Company Law of the People’s Republic of China in the global era, by reviewing domestic and foreign legislation, precedents, and theories and taking predictability, openness, and practicality of a new Company Law into consideration. The main part focuses on the problems of the current Company Law of the People’s Republic of China and basic discussions on its revision, based on the review on capital system, incorporation, and organizational structure of limited liability companies.

As the relationship between Korea and China strengthens and the importance of Chinese market rapidly grows, this paper analyzes the Chinese tax system and current issues. The paper can be summarized as follows: First, we must understand the Chinese perspective that tax system is one of the most important policy means to achieve national goals, an expression of national rights and interests, and belongs to the deeds of national governing. Second, we must predict future tax reforms properly and take appropriate measures. Third, China has recently promoted preferential tax policies for high-tech industries such as IT & BT and the field of infrastructure. we must pay continuous attention to the preferential tax policies for foreign investments. Fourth, we must understand the recent changes in the partial return system of VAT and take appropriate actions under the given situation. Fifth, as the State Administration of Taxation is strengthening its transfer pricing system and preparing relevant database, we must keep an eye on the transfer pricing system.

The government of the People's Republic of China introduced the outside director system of the U.S.A. in August 2001 in order to protect interests of minority shareholders and to improve corporate governance. It will take some time that the outside director system of the U.S.A. is taken root in the corporate culture of China and becomes effective. Moreover, in order for the outside director system to be really effective, the roles and responsibilities of independent directors should be defined and rational procedures of electing independent directors are set up. The effectiveness of the outside director system may be promoted by other various factors affecting corporate governance including, for example, improvement of ownership structure. Therefore, it is still early to say whether the outside director system of China is effective or not.