Problem with Legal Enforcement Since then, many foreign investors have contracted to invest and do business with China. According to Mr. Cohen, the courts in China have often failed to enforce even their own judgments. Mr. Liu agrees that legal enforcement is a major deficiency in Asia. In fact, there are good laws on the book, but no effective enforcement. He sees globalization and China's entry into the WTO as an ideal framework for legal reform in China.
Laws relating to economics are crucial to economic growth.
In particular, property law protecting minority shareholders' interests, the laws of competition and market openness are all crucial for competing with other countries for foreign investment. In Taiwan, most senior politicians are lawyers, including the president himself and a few top cabinet ministers. This presents a deepening platform for legal reform. Mr. Liu thinks that the in the end, the solution still lies with the public sector. The government should be willing to make difficult decisions and should resolve to combat problems such as institutionalized corruption by public officials.