The Development And Perfection Of China 's Foreign Investment Admission System

With the deepening of the economic globalization, every county has more needs on the capital flow all over the world. Under such circumstances, the capital flow is accelerating sharply while international investment being one of the main forms of capital flow has made great contributions on the economic globalization. Complementarily, the economic globalization challenges the requirements and conditions of the international investment, which means the traditional investment rule is not able to satisfy the increasing economical requirements any more. Consequently, the traditional theory of international investment is now being questioned. The jurisdiction on investment of the host country is gradually weakening with the increasing of extent of the liberalization of investment. The developing country being the main supporter of jurisdiction on investment is also improving its legislation concept of the foreign investment under the motivation of economic benefits, the general requirements on standing on the international stage and the promotion of the developed country, led by the USA. The principal of national treatment will not only be applicable originally in the operation stage of foreign investment to but also to the market entry stage of foreign investment.China, being one of the main investment places for a long time is very conservative on the entry of foreign investment which is obviously not in consistent with the development trend of the international investment. The two substantial matters, i.e. China (Shanghai) Pilot Free Trade Zone has applied the pre-establishment national treatment and negative list and China has agreed the pre-condition (pre-establishment national treatment and negative list) for negotiation of Sino-USA BIT to which is a huge creation and trial to China’s foreign investment legislation. Further, the issuance of "Foreign Investment Law (draft for public opinion)" is vial supplement to the above two matters which means the new era for China’s foreign investment law system. However, the reform on laws shall be proceeded gradually. Currently, the practice in Shanghai Free Trade Zone is proceeding slowly and also exists a lot of problems. The provisions in the Foreign Investment Law (draft for public opinion) are required to be further specified.Actually, China still apples to traditional foreign investment entry system, i.e. national treatment principle after entry of foreign investment and approval case by case, which led to the slower progress during the investment liberalization. It is an inevitable obstacle when we continue to develop our economy. Nevertheless, please note that investment liberalization is still not the basic principle of international investment. It is a problem which shall be further assessed that whether our economy can adopt to deepen the investment liberalization. The author considers that reform cannot accomplish in one action immediately. We shall try our best to formulate the foreign investment entry system which applies to our national conditions by further opening wider to the world, making reference to the advanced legislative experience and learning from our domestic legislative practice.