Study On National Treatment To Foreign Investment In China

This thesis studies the national treatment issue to foreign investment just in the period when China is going to join WTO. Based on the deep understanding on WTO rules, its content, current situation in China, the necessity and feasibility to adopt national treatment in China are studied. Some suggestions are raised concerning the adoption of national treat in China.Firstly, beginning from its definition, history and characteristic, the concept is clarified and its transformation is summarized, which is from civil to economic area, from goods trade to investment and service field. The basic purpose is to avoid discrimination to foreigners and their activities such as investment and service.Secondly, the content of national treatment is studied. The regulation about the national treatment in WTO is expounded. The whole process of foreign investment is divided into two different stages. One is the admission of foreign investment; the other is the operation of foreign investment. For most counties, the former restriction is mainly on the permitted field and the admissive conditions; the latter is mainly on the macro-economic administration.Thirdly, the current situation is studied in China from both investment protection treaties signed and the domestic legislation. The study shows that, in admission foreign investment stage, there are still some gaps between the principle of national treatment and our current situations, especially in service trade area. In administration of justice and civil rights protection area, national treatment is already realized while in macro economic administration area, there are still some gaps.Fourthly, based on the intrinsic requirement of China's economic development, the trend of economic globalization and the pre-condition of WTO entry, the necessity of the adoption of national treatment is verified. The Socialism market economic system is being built and the economy is growing very fast and strong enough against the risk. It is concluded that the conditions are fulfilled to realize national treatment to foreign investment in China.Combined with WTO rules and the situations in China, below suggestions are raised in order to adopt national treatment principle for us: Modifying current investment measures including law and regulation which disobeys WTO requirement;Re-structing the foreign investment law system; Uniting the domestic law to make clear reference for national treatment; Fully utilizing WTO rules to keep some reasonable exception; Weakening gradually the favorable treatment to foreign investment to maintain the fair environment for competition.