Research On Overseas Investment Protection Under The Unconstitutional Procedures Regime Change

Chinese government began to encourage qualified enterprises to carry out overseasinvestment activities in1990s. After joining the WTO, China clearly put forward the"going-out" strategy, and further encouraged the overseas investment. Overseasinvestment could help Chinese investors make full use of domestic and foreign resources,and could drive the export of domestic products, speed up the adjustment of domesticindustrial structure, enhance the international competiveness of enterprises and promotethe growth rapid of Chinese economic. In recent years, China’s overseas investment hasaccelerated obviously, and its scale has expanded rapidly and the fields of overseasinvestment have also increased continually. However, the risks of the overseasinvestment also have emerged unceasingly, not only the commercial risks, but also thenon-commercials risks. The political risk worries the investors most. Especially when thenon-constitutional procedure regime change happens, it will cause a great unimaginableloss because the complex situation, which may result in serious damage to the interests ofinvestors and the investors’ home countries. What’s more, a great portion of China’soverseas investments are concentrated in developing countries, but these centuries’political situations are insatiable and the non-constitutional procedure regime changeprone to occur in these countries. On February15,2012, the not-constitutional procedureregime change occurred in Libya, which made all Chinese-funded projects strand.According to statistics, the aggregate amount of the projects contracted by China inLibya is up to18.8billion US dollars. Before the air attack launched by the multinationalforce, many construction places and camps were attacked and robbed, which causeddirect economic loss1.5billion RMB. In addition, a large number of fixed assets loss anddisbursements loss were also involved. Under the circumstances, the research on how toprotect Chinese overseas investment under non-constitution procedure regime change issignificant.This thesis is divided into four parts. The first part introduces the legal relationshipsformed in the process of overseas investment and the general protection methods. Theserelationships include the relationship between investors and investors’ home countries,the relationship between investors and host countries and the relationship between host countries and investors’ home countries. The general protection methods include thedomestic protection in host countries, the domestic protection and internationalprotection in investors’ home countries. The second part introduces the necessity of theoverseas investment protection under the non-constitutional procedure regime change.We conclude why it is necessary to protect the overseas investment under thiscircumstance by analyzing the particularity of the non-constitutional procedure regimechange. The third part proposes some special measures to protect overseas investmentunder the non-constitutional procedure regime change. The non-constitutional procedureregime change will make some protection measures of overseas investment becomedifficult to implement, therefore, we think that the overseas investments can be protectedfrom two aspects, including preventive measures and relief measures. In the fourth part,we focus on China’s law and practice on the overseas investment protection under thenon-constitutional procedure regime change. And finally, we propose the perfectingsuggestions.