On The Role Of International Economic Soft Law In China 's Overseas Investment

Chinese Multinational Corporation is not plain sailing in the case of overseasinvestment in recent years. Although Chinese overseas investment is welcome inmany countries, Chinese Multinational Corporation gets considerable profit, however,so many failing case show that China is a emerging economies in the world marketand China lack of investment experience. The absence of enough cognition of theinternational economic soft law which is surging forward in the world of Chinese is arealistic reflection. This article will start with several abortive cases of Chineseoverseas investment and analyze them in the perspective of Equator Principles;introduce the conception and current situation of international economic soft law;analyze the value of international economic soft law and it’s effects on Chineseoverseas investment; present suggestions and summarize in the end.This article will analyze and discuss mainly from five aspects. The first partintroduces a classic case——the Merowe Dam case, and the discussions provoked byit about the problems in Chinese overseas investments. In the beginning of this part, itanalyzes the negative effects in and after the dam’s construction, also introduces othersimilar cases. Then it introduces the specific contents of the Equator Principles fromthe perspective of the Chinese overseas investments’ risks, which are caused by theunfamiliarity about the soft law. The problem to be solved in this article is raised inthis part, namely the China’s unfamiliarity to the international economic soft law,which is represented by the equator principles, and the following risks and theresolution.The second part includes the conception and generation of the Equator Principles.Here introduces conceptions of soft law, international soft law and internationaleconomic soft law and makes contrasts between them. Also the generation, maincontents and reality about the Equator Principles, a typical international economic softlaw, are introduced.The third part discusses the values and effects of the Equator Principles. Itanalyzes through six angles: profits and performances, adjustments of themanagement structure, rules and standards of world’s economic operation, scope ofapplication of the Equator Principles, trends of development of internationaleconomic soft law, and brand credit of investors.The fourth part discusses practices of the Equator Principles home and abroad.This part consists of three points.1, The international practices of the EquatorPrinciples.2, The practices of Chinese financial institutions, which is represented bythe Industrial Bank, and other Chinese banks’ green credit measures.3, Trends ofdevelopment.The fifth part put forward some suggestions for the Chinese practices of theEquator Principles. There are four points:1, To strengthen the domestic financialorganization system and the construction of personnel.2, To clean up the soft lawrelated to the equator principles systematically and strengthen theoretical researches.3, To enhance the awareness of social responsibility and build communication mechanism with interested parties.4, To participate in the revision and thedevelopment of the Equator Principles actively.In the end, this article comes to a conclusion beyond the whole analysis. Itemphasizes again that China should pay attention to the development of internationaleconomic soft law in the overseas investments. It holds that China should actively joinin the system of international economic soft law and learn and use the rules, in orderto exert influence on the generation and development of the rules. Also it analyzes theeffects of the international economic soft law as a complement of the utility anddevelopment of soft law.