Management Mechanism Of China's Foreign Investment Environment, Legal Research

China's foreign investment has made great progress in the past 30 years, which played a positive role in promoting Chinese economic development by the comprehensive utilization of resources at home and abroad. But at the same time, the adverse environmental impacts of China's foreign investment has been highlighted, and the rumor of "China's environmental threat" has been widely reported by western media. Controlling the environmental impacts of China's foreign investment is inevitable.The mechanism of "race to the bottom" and the lack of environmental mechanisms and enforcement resources in the host country lead to the poor legal restrictions on China's foreign investment. In order to fulfill the environmental commitment and present the image of a responsible country, China should take the initiative to address environmental problems caused by its foreign investment.In the field of foreign investment, China has formed a management organization system in which the commerce departments are playing the key role, the other departments address professional issues, and the embassies coordinate other departments. China has adopted some direct or indirect environmental management systems, including the administrative examination and approval system, the joint annual inspection and comprehensive performance evaluation system, statistical system, and green credit system. But the management mechanisms are facing some problems, including the competing interests between the economy and the environment and the lack of environmental color, such as the lack of proper and systematic foreign investment environmental management systems, the limited supervision channels, the emphasizing of economic management rather than environmental management, the emphasizing of the administrative examination and approval system before the investment rather than the supervision afterwards, the emphasizing of the supervision rather than the service.The environmental management of foreign investment in the international community is in the initial stage. Most of the mechanisms are simple and need to be improved. For example, "Corporate Code of Conduct Act" (USA,2000), "New Economic Regulation" (France,2001), "Guidelines for external reporting by state-owned companies" (Sweden, 2007) and the Equator Principles. But China need to draw lessons from these countries since China's similar movements are in the very beginning.Based on the current foreign investment management mechanism, China should learn from other countries to improve it, seeking to establish a systematic foreign investment environmental management mechanism. Firstly, China should reform foreign investment management mechanism, strengthen the functions of environmental management, including reforming the organization system of foreign investment management and highlighting the role of the Environmental Protection Department; innovating upon environmental management system; making the supervision channels flow; improving environmental information supporting system to enhance the environmental awareness of Chinese enterprises overseas. Secondly, China should adopt the Equator Principles, green the credit policy, including translating the Equator Principles into internal policies and procedures by the banks and formulating relevant policies and regulations to promote the Equator Principles by the government. Thirdly, China should promote the status of NGOs, encourage NGOs to play a significant role in the supervision of Chinese foreign investment. In a word, by the cooperation of government, NGOs and banks, China should establish a co-regulatory model of "government-NGOs-banks" to achieve the "win-win." Model of ecological and economic benefits of China's foreign investment.