China Explores International Investment Agreement as a Method to Resist Protectionism

While changing their roles from recipients to investors in cross-board investments, developing countries are raising their voices in calling for more transparency and fairness in global trade and investments. On a symposium hosted by the Shanghai Institute for International Studies (SIIS) on Tuesday, panelists advocated multi-lateral organization to establish international investment rules to keep markets open, resist protectionism and foster responsible investment as a precondition for the global economic recovery.

SIIS organized the event together with Stiftung Wissenschaft und Politik (SWP) and Heiligendamm Process Support Unit (HDP-SU). Mr Noboru Hatakeyama, Chairman and CEO, Japan Economic Foundation said on the symposium, ¡°it is vitally important for the WTO to establish international investment rules as soon as possible,¡± which is backed by the argument that ¡°developing countries, including G5, are no longer only recipient countries but are becoming origins of outward foreign direct investments (FDI) as well and should enjoy fair international investment rules as investors.¡±
G5 increased their shares in outward FDIs gradually; China in particular increased FDI by 328.2% in the first half of 2008, and by 95.8% in the second half.

However, the ¡°silk road¡± of going abroad has not been silkily smooth.

Mr. Marco Marazzi, Partner, Baker & McKenzie, claimed the cause of this ¡°unfairness¡± lies with the lack of such an agreement.

Mr Marazzi believes such an international agreement would enhance the transparency and consistency of government policy in cross-board investment. Mr Hatakeyama added, ¡°Even when the international investment agreement is established, I think you can keep regulations on FDI if they can be explained for national security reasons.¡±

However, since Doha Development Round negotiations are stagnant and investment issues are not included in the agenda, some panelists believe adding the additional task to the WTO of implementing an international investment agreement may not be practical; instead, some informal joint efforts made by G5 and G8, such as HDP, may play a role in promoting the establishment of this agreement.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.