Published 10 July 2019
This paper aims to fill in the gaps of the previous legal research conducted with Prof. Chaisse in 2017. These gaps include the reform on Chinese inbound foreign investment regimes for reciprocal market access of other jurisdictions, the latest corporate practices of state controlled entities (SCEs) regarding enhancing transparency and accountability and the US and EU’s compliance with WTO’s GATS Mode 3 and various OECD guidelines. In the context of outbound foreign direct investments (FDIs) in port and rail infrastructures, this research focuses on how Chinese SCEs interact with foreign jurisdictions in respect of freedom of investments and national security. Recently, many host states such as the US and EU adhere to protectionism to counteract Chinese FDIs for the reason of national security or public interest. This act is completely contrary to freedom of investments conventionally upheld by the global community. In response to this new phenomenon, China has carried out a series of reforms on its regulations in order to create more advantageous environment for its port and rail FDIs. Further, the paradigm of SCEs has started to move towards higher transparency and greater accountability by complying with certain international rules such as IMF’s Santiago Principles and OECD Guidelines on Corporate Governance of State-owned Enterprises and some private practices. With these paradigm shifts of regulations and SCEs, host states adopt different approaches in response to Chinese port and rail FDIs. This paper will, in the context of port and rail FDIs, provide an insight into 1) reform of Chinese regulations, 2) paradigm shift of SCEs and 3) global freedom of investments.
This paper will be part of the TDM Special Issue on "The Changing Paradigm of State-controlled Entities Regulation: Laws, Contracts and Disputes". More information here www.transnational-dispute-management.com/news.asp?key=1719