This Article discusses the positive role of altruistic investment in any transition economy by making specific reference to altruistic investment in the Chinese economic transition. The Article discusses the social welfare hardships arising from the transition process and then discusses the U.S. and Chinese tax incentives and barriers to altruistic investment that would lessen that hardship. After that, the Article discusses the reasons why both countries might prefer to retain those barriers. Finally, the Article concludes that altruistic investment has more positive then negative consequences and makes a simple proposal to stimulate altruistic investment in China in a manner that would assist the transition process without sacrificing either country's mutually exclusive goals. The proposal, that the WTO recognize, encourage, and integrate altruistic investment through international tax policy, is useful not only in China but in other developing or economically reforming countries.
Darryll K. Jones, The Neglected Role of International Altruistic Investment in the Chinese Transition Economy, 36 GEO. Wash. INT'l L. REV. 71 (2004).