Hastings International and Comparative Law Review


Larry L. Drumm


Completed shortly before the controversial $100 million Lehman Brothers civil lawsuit against two ,Chinese firms over foreign exchange obligations made headlines, this Note provides a detailed overview of the development of PRC's complex foreign exchange system before the time of the suit and includes a full explanation of the 1994 overhaul, its causes and implications.

In succession, the Note explores the history of the system, the problems the foreign exchange system presented to foreign direct investment, the crisis believed to have prompted the 1994 reforms and finally the form and potential impact of the reforms on foreign direct investment and the Chinese economy.