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Towards WTO Compliance

Towards WTO Compliance I. INTRODUCTION Substantial academic work has been done showing that foreign investments play an indispensable role in achieving development goals for developing countries.' Market size is an important consideration for a foreign investor contemplating a particular foreign investment. However, without a favourable investment regime, foreign investors are either unable or reluctant to enter the market. The foreign investment regime in the People's Republic of China is generally regarded as favourable to foreign investment.2 It has played a very positive role in attracting foreign investment into the country. The annual foreign investment inflow has remained the second largest among all recipient countries in the world since 19923 and reached US$ 46.8 billion in 2001. By the end of2001, the foreign investment stock was US$ 395.5 billion.4 As a result of its bid to join the World Trade Organization, China's foreign investment regime is becoming more market-friendly, although certain heritages of the transitional economy are still perceptible. This article aims to evaluate the compatibility of China's foreign investment regime with the WTO investment rules. Since the WTO Agreements will not be directly applicable, the laws and regulations China revises and adopts-rather than the text of the Protocol on the Accession http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of World Investment and Trade Brill

Towards WTO Compliance

Journal of World Investment and Trade , Volume 3 (5): 20 – Jan 1, 2002
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Publisher
Brill
Copyright
Copyright © Koninklijke Brill NV, Leiden, The Netherlands
ISSN
1660-7112
eISSN
2211-9000
DOI
10.1163/221190002X00300
Publisher site
See Article on Publisher Site

Abstract

I. INTRODUCTION Substantial academic work has been done showing that foreign investments play an indispensable role in achieving development goals for developing countries.' Market size is an important consideration for a foreign investor contemplating a particular foreign investment. However, without a favourable investment regime, foreign investors are either unable or reluctant to enter the market. The foreign investment regime in the People's Republic of China is generally regarded as favourable to foreign investment.2 It has played a very positive role in attracting foreign investment into the country. The annual foreign investment inflow has remained the second largest among all recipient countries in the world since 19923 and reached US$ 46.8 billion in 2001. By the end of2001, the foreign investment stock was US$ 395.5 billion.4 As a result of its bid to join the World Trade Organization, China's foreign investment regime is becoming more market-friendly, although certain heritages of the transitional economy are still perceptible. This article aims to evaluate the compatibility of China's foreign investment regime with the WTO investment rules. Since the WTO Agreements will not be directly applicable, the laws and regulations China revises and adopts-rather than the text of the Protocol on the Accession

Journal

Journal of World Investment and Trade – Brill

Published: Jan 1, 2002

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