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Critical analysis of the new Chinese foreign investment law in the prism of China-EU CAI and China-US bit negotiations

Sociology International Journal
<font face="Arial, Verdana"><span style="font-size: 13.3333px;">Chunping Bush&nbsp;</span></font>

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The Chinese foreign direct investment legal system prior to 2019 evolved constantly, although it failed to satisfactorily address the main issues for foreign direct investments. The new Chinese Foreign Investment Law of 2019 and its Implementing Rule made a landmark improvement to the legal system. This new reform went hand in hand with the China-EU Comprehensive Agreement on Investment (CAI) and China-US BIT and their negotiations. It played a preparative role for the progress made in these two influential investment agreements. It offered unprecedent solutions in areas such as the pre-establishment national treatment, prohibition of forced technology transfer and the enhanced foreign investment protection. Nonetheless, further reforms on SOEs are still needed. The ratification of the China-EU CAI and the reanimation of the China-US BIT, albeit unlikely to happen anytime soon, would still provide long-desired clarity to the dispute resolution mechanism, national security review system and forced technology transfer issue.


Chinese foreign investment law, investment agreement, bilateral investment treaties, market access, dispute resolution mechanism, forced technology transfers