Research On The Laws And Regulations Of Performance Requirements

Performance requirements are a series of domestic measures adopted by the host country to introduce and manage the foreign investment.Their existence is necessary and legally to practice.However, with the development of economic globalization and higher requirement of international investment liberalization, some western countries have raised doubts about the legitimacy of the host country's performance requirements action.In the recent international investment legislation, the prohibition of performance requirements come out .In this case, the developing countries'right to control the foreign investment, which was gained with a long-time fighting, is facing unprecedented challenges.Concerning on the bilateral investment legislation, the USA set abolishment of performance requirements as an important goal to sign bilateral investment agreements. When the USA is drawing up model agreement for bilateral investment s, it begins to carry out prohibited performance requirements and limit the host country's rights of managing and guiding foreign investment. The irrational limits are raised for the host country to practise its investment right during the period of approvaling and operating the investment.Then let's turn to the multilateral investment legislation. NAFTA, MAI Draft, and TRIMs Agreement impose stringent restrictive regulations on performance requirements that makes countrise' foreign investment jurisdiction restrained from the multilateral principles.This thesis starts with economic sovereignty and the new development of performance requirements from the aspect of international investment law, then further analyses the laws and regulations on performance reguirements from BIT, NAFTA, MAI ,and TRIMs Agreements, and reveal the true nature of performance requirement. Finally, takes this as the backgroud of improvement of our overseas investment legislation.The organization of this theis is as following:The theoretical and practical significance of performance requirements are briefly stated as an introduction. In part one, discusses the origin of the performance requriements and gives definion of it in narrow sence.In part two, elaborates the rules on performance requriements from international law and bring about the facts that prohibiting performance requirements weakened the host country's right to introduce and encourage foreign investment based on the bilateral and multilateral regulations.In part three, further discusses the rules about performance requirement under the WTO,then points out that the developing countries should pay more attention to these potential serious aftermath.In part four, sums up the improvement of performance requirement we have made through jurisdiction of overseas investment and gives conclusion that on the premise of that guaranteeing national interests,we should try our best to avoid exceeding measures upon foreign investment and loose the strict control. In this case, we can improve our investment environment.In a word, the performance requirement is actually a game or a struggle between developing and developed countrieson their own interests.It is still a long way to go on this issue.As the biggest developing country, China should obey WTO's basic principles and pay more attention in multilateral negotiations from now on.