Chinas Practice in International Investment Law

The first draft of this paper was presented at the Conference on The Future of Investment Treaty Arbitration: Challenges and Response held at the SNU on May 12, 2012.China is now the largest recipient of foreign direct investment among emerging markets and a major home country for FDIs. In less than 40 years since it began its modernization process in the late 1970s, the country has entered into more than 120 bilateral investment treaties (BIT) and free trade agreements (FTA). With the status change from a pure capital importing country to a country of both importing and exporting capital, Chinas policy toward foreign investment has evolved from emphasizing the rights of home States to focusing on protection of investors and investments. An example in this regard is investor-state arbitration which was strongly resisted by China but now a common feature in all BITs and FTAs to which China is a party. This article first examines Chinas practice toward foreign investment over the last three decades and more, analyzing Chinas policy reflection on treaties and laws. The mechanisms that China has established in respect of foreign investment are discussed. Thereafter, detailed comparison and discussions are made between Chinas treaty practice and international investment arbitration to illustrate in what way and to what extent Chinas practice is in compliance with contemporary investment arbitration practice. Issues analyzed include, qualified investors and investments, fair and equitable treatment, minimum standard of treatment, full protection and security, most-favoured-nation treatment, national treatment, expropriation and compensation, and mechanisms relating to dispute resolution

One Country, Two Systems: Theory into Practice

The Hong Kong Special Administrative Region was established on July 1, 1997, when the former colony was handed over by Britain to China. Thereafter the policy of One Country, Two Systems began as dictated by the Basic Law. This article examines the evolution of the One Country, Two Systems policy and discusses how this policy has been reflected in the Basic Law. As any change in the Basic Law may affect the implementation of this policy, and perhaps the stability and prosperity of Hong Kong, this article also analyses the scheme, policies and rules in relation to interpreting and amending the Basic Law. It advocates for learning from the experience of other common law jurisdictions and recommends adopting the principles of consistency, progressiveness and foreseeability in interpreting the Basic Law

Foreign direct investment and investment environment in Dongguan Municipality of southern China

Based on 26 case studies, this paper investigates the socio-economic causes of the inflow of FDI and its policy implications in Dongguan. The favourable factors for foreign investors in Dongguan can be categorised under the Dunning's OLI (ownership, locational and internalisation advantages) framework. This paper argues that factors other than policy incentive, such as sub-contractual and pseudo integration, are playing more important roles in attracting the inflow of FDI and maintaining the high level of economic growth in Dongguan. This finding questions the effectiveness of policy incentives, such as tax-breaks, implemented by the Government as a means to attract FDI in Dongguan. The existence of 'Chinese crony capitalism' calls for further improvement in the implementation of laws and regulations in Dongguan and the reduction of bureaucratic red-tape by the central and local governments

A Survey of China's Economic Contract Law

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A Survey of China's Economic Contract Law

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Mediation and International Investment: A Chinese Perspective

The most important feature of the contemporary world is globalization with a high degree of economic interdependence among nations, which includes breaking down national economic barriers as well as the increasing cross-border economic exchanges and transactions of goods, services, and capital, not only in a large scale but also at a high frequency. The spread of market economy across the globe has created a global market, which effectively allocates resources and distributes them at a global level. It was the development of technology relating to information, transportation, and communications, such as the internet and teleconferencing, that enabled the effective and smooth transnational transactions and exchanges at reduced transaction costs. Globalizations a dynamic process that involves the flow of goods, services, capital, and technology, as well as culture. Meanwhile, it also promotes the homogeneity and interaction of different cultures. Understanding different cultures is vital for global business, including investment. Ignorance of cultural dimension may lead to difficulty, if not impossibility, in achieving successful business. Apart from the lack of awareness of different cultures, insufficient communication between transaction parties also causes misunderstandings and conflicts. It is possible, for instance, for a Chinese company to sign a contract with no understanding of its terms. Moreover, discrepant conceptions of different people, organizations, and governments are also major sources of conflicts. A significant aspect of international economic exchanges is investment, which has become part of development policies of many countries. In fact, some of the regimes may even rely on foreign direct investment for their effective control. In these circumstances, most countries, if not all, try to improve their investment environment by accepting, inter alia, investor-state arbitration in order to compete for foreign direct investment. However, recent arbitration decisions are not up to the expectations, to say the least, of investment host countries. This article analyzes the contemporary issues relating to international investment, and considers whether mediation can serve as an alternative for resolving investment disputes. In this regard, it will examine the Chinese culture and practice in resolving disputes involving foreign investors and the Chinese government to determine if the Chinese experience could be adopted as an Asian value in promoting foreign direct investment

Secrecy Capacity of a Class of Erasure Wiretap Channels in WBAN

In wireless body area networks (WBANs), the secrecy of personal health information is vulnerable to attacks due to the openness of wireless communication. In this paper, we study the security problem of WBANs, where there exists an attacker or eavesdropper who is able to observe data from part of sensors. The legitimate communication within the WBAN is modeled as a discrete memoryless channel (DMC) by establishing the secrecy capacity of a class of finite state Markov erasure wiretap channels. Meanwhile, the tapping of the eavesdropper is modeled as a finite-state Markov erasure channel (FSMEC). A pair of encoder and decoder are devised to make the eavesdropper have no knowledge of the source message, and enable the receiver to recover the source message with a small decoding error. It is proved that the secrecy capacity can be achieved by migrating the coding scheme for wiretap channel II with the noisy main channel. This method provides a new idea solving the secure problem of the internet of things (IoT)