Abstract
In the last 40 years, the People’s Republic of China (China) has emerged as an important exporter and importer of capital. This transformation has also been characterized by a parallel evolution of China’s international investment law
policy. China’s international investment agreements (IIAs) have thus been at the center of international economic legal scholarship. Notwithstanding, gaps exist in the current literature. Notably, one of these gaps is the implications that
China’s existing IIA framework might have on China’s endeavor to strengthen its transnational economic partnerships. Tensions and legal loopholes, which are central to these implications, emerge from, on the one hand, China’s unabating protection of its sovereignty over economic related activities, and, on the other hand, the interests of Chinese nationals investing abroad. This article examines this key issue against the background of recent investment arbitral jurisprudence, legal uncertainty of the Belt and Road Initiative, and existing Chinese IIAs. Combining qualitative and quantitative analysis, this article distills some of the key concerns for updating China’s current expanse of investment agreements. The authors show that the transformation of China’s IIA practice in the next decade shall be largely determined by an increase in investor-state disputes and global events. The core of this transformation, with the most profound implications for foreign investors and China, are pre-establishment national treatment and investor-state dispute settlement clauses. These remain central to the consolidation of China’s position as an important actor in the current global regime of economic interdependence.
policy. China’s international investment agreements (IIAs) have thus been at the center of international economic legal scholarship. Notwithstanding, gaps exist in the current literature. Notably, one of these gaps is the implications that
China’s existing IIA framework might have on China’s endeavor to strengthen its transnational economic partnerships. Tensions and legal loopholes, which are central to these implications, emerge from, on the one hand, China’s unabating protection of its sovereignty over economic related activities, and, on the other hand, the interests of Chinese nationals investing abroad. This article examines this key issue against the background of recent investment arbitral jurisprudence, legal uncertainty of the Belt and Road Initiative, and existing Chinese IIAs. Combining qualitative and quantitative analysis, this article distills some of the key concerns for updating China’s current expanse of investment agreements. The authors show that the transformation of China’s IIA practice in the next decade shall be largely determined by an increase in investor-state disputes and global events. The core of this transformation, with the most profound implications for foreign investors and China, are pre-establishment national treatment and investor-state dispute settlement clauses. These remain central to the consolidation of China’s position as an important actor in the current global regime of economic interdependence.
| Original language | English |
|---|---|
| Number of pages | 1 |
| Journal | Berkeley Business Law Journal |
| Publication status | Published - 2020 |
| Externally published | Yes |