Research On Bilateral Investment Treaty Of America

Nowadays,the international investment rule is a combination of fragment,which is different from international trade rule.As the most powerful and influential country,the USA control the global economic order and international rules,so his Bilateral Investment Treaty is the most influential and typical,and it is a good research object for scholars.Because China and the USA have not ratified the BIT,studying the BIT and its model is meaningful for China to adapt or formulate international investment rule,especially lots of scholars believe the BIT 2012 model aims at China.The BIT not only is international rule,but it also reflects the attitude to international capital flow.In that,the BIT is a part of economic policy,and it serves the economic strategy.As a result,if we study the BIT from the angle of economic strategy,we can perceive it more scientifically and integrally,and avoid ignoring some significant things.Economic strategy is a general guideline about economy,and it includes its aim and path.If we consider it simply and excellently,the aim of economic strategy should be maximizing the economic benefits for the entire country,or the aim serves the entire country.Besides,the aim should be single.However,only one class which has a small population can control or affect state power in most of countries,so the fact usually is opposite,or the aim of economic strategy is not single.The ruling class makes strategy for the benefits of their own class,not the benefits of the entire country,so does the USA.Because bourgeoisie control the state power in the USA,it makes strategy benefit itself firstly,then help the country.In that,the USA would like to let lots of capital of the USA flow to everywhere of this world,and bring the profit or benefits,which makes domestic industry hollowing,unemployment and other social problems.The path of America’s economic strategy has changed some times in its history.From the independence to the WWII,the path of its economic strategy is endogenetic,or we can find that the USA produced everything in its own land.After then,the path of economic strategy became extroverted.The USA didn’t produce only by itself any longer,and it invested and produced in other countries with occupation of high-end part of the global value chain.From 1990s,the USA can benefit in the wave of other countries’ financial market by adjusting its own monetary policy,because United States dollar is the unique world currency.In this time,the USA has been more similar to a pirate of other countries’wealth,rather than a wealth maker.The path of America’s economic strategy is investing to other countries.If it can not invest outside itself,it will not get economic benefits.As a result,it is very necessary for the USA to ensure the safety and convenience of transnational investment.In addition,the USA needs a tool to enhance its competitiveness,weaken opponent’s competitiveness and protect its key industry.The tool is just the BIT,so the USA makes some models to gain advantage in the negotiations.Because other countries are weaker than America,the BIT is more helpful to itself.The BIT 2012 model is made with a strict standard,and it includes lots of new rules,such as competitive neutrality,labor and environmental protection.Besides,The BIT 2012 model intervene in domestic affairs of other countriesEvery item in BIT 2012 model reflects America’s economic strategy.For example,the definition of investment is a fundamental rule in BIT,because it decides how much the effect of the BIT.The definition of investment in international agreement is more and more broad,and it nearly is equal to possession in the BIT 2012 model.But in the history,investment just means enterprise.In this case,the USA can protect all its possession in other countries.Besides,the broader definition has a hidden effect,and it asks for other countries to open their capital account,and it may lead more and more government accused So,developing countries should pay more attention to this issue.Competitive neutrality becomes an important issue recently,because the USA makes competitive neutrality come into international trade and investment rules actively.In the TPP,the item about competitive neutrality defines state-owned enterprises,noncommercial assistance and adverse effect too widely,that will harm some countries whose state-owned enterprises are very important.The theory which competitive neutrality depends is not right all the time,and its truth should be that a government can not give special treatment to a company who has common interests.So,it is not right or fair to confine state-owned enterprises.The USA can avoid the injury by disguised replacement of concept,because big enterprise can control government in the USA.In that,China also can change the concept of competitive neutrality to face this situation,and change the state-owned enterprises into aligned interest enterprises with governmentInternational labor rules are unrelated with economic agreement originally,but they have been associated with international economic rules by the United States and other developed countries in the name of protecting labor ’s human rights recently,so that they can take on moral high ground,brownnose domestic worker,and weaken developing countries’competitiveness.However,the international labor rule violates economic regulation,and it doesn’t reflect laborer’s condition.In addition,the lower labor standard isn’t a mistake caused by developing countries,but some developed countries ought to undertake the due obligations.The developing countries should build a common but differentiated responsibility system,ask for compensation to developed countries,and restrict the excessive protection of capital.Performance requirements rule is traditional in investment agreement,and it is stricter and more detailed in BIT 2012 model in the name of ensuring market efficiency and preventing government’s interference to enterprise.While,the real purpose of America is preventing developing countries breaking his chain of global industry.In fact,performance requirements are some contracts between government and foreign investors,and they are not forced.The rule of performance requirements violated contract spirit,so the reason of performance requirements rule is not convincingIn BIT 2012 model,the item about environment is very similar to the labor rule,and it also could increase developing countries’ cost and stop from their industrial upgrading.However,the reason of letting environment come into BIT is not convincing and fair.In the past,there was not environment rule,and America didn’t abide it,but after America’s industrialization,the item prevents developing countries9 industrialization.That is not fair.In addition,there isn’t a scientific rule about environment because of the difference among so many countries.Usually,negative list has been seen a mechanism to protect domestic weak industry,but it is still an issue about how to distribute benefits between a country and an investor.In some industries,just like mining,agriculture,finance and public service,FDI can’t create new wealth,but take away wealth stock from the host country,that is opposite in manufacturing.In that,negative list can be researched from the aspect of wealth stock,and it is also a tool for America to gain benefits from other countries because America asks for the shortest negative list.The rest of BIT 2012 model also help America accomplish his aim of economic strategy.For instance,the item of dispute settlement can protect America’s asset in other countries by convenient international arbitration,and it harms other countries’judicial sovereignty.The financial service item make America expropriate foreign asset legally,which is a new problem.Besides,essential security item is non-transparent and unfriendly to Chinese state-owned enterprise.Since Trump being American president,economic strategy has changed a lot,which will lead the change of BIT.The USA wants to make its manufacturing industry prosperous again by tax reduction,infrastructure construction and trade war,which means the USA gives up its original economic strategy which let America get benefits in other countries.In that,the misson of BIT should be changed,and the standard of BIT may be lower and lower,because America wants to attract more capital from other countries by BIT,or the USA may abandon BIT.There are many disputes between America and China in the BIT negotiations,such as state-own enterprise,labor,environment and negative list,which caused radically by the conflict of economic strategy and the fight for dominant right.China should not overrate the meaning of BIT between China and America,or should not make too much concession.Attribute to the conflict of economic strategy,there will be more competition and less cooperation between China and America,so the SINO-US BIT won’t be achieved,or achieved nominally.