Research On The Legal Issues Of Chinese Overseas Investment

With the deepening level of participation and cooperation with the international economy, China is experiencing an upsurge of worldwide overseas investment. The financial crisis in2009has been considered as the turning point for Chinese overseas investors. In recent years, China’s overseas investment has developed rapidly, infusing a strong power into the development of the world economy. Enterprises’going out for overseas mergers and acquisitions has showed that the overseas investment of China has been among the international competition. China’s overseas investment presents the characteristics of "leapfrog" development with Chinese enterprises going abroad and investing in other countries around the world. At the same time, Chinese investors have been involved in the complex legal system of international investment. With the development of China’s overseas investment and the speeding pace of Chinese investors’going out, the legal risk has been greatly increasing. According to the incomplete statistics, the failure rate of overseas investment of China is much higher than the success rate, due to many factors but largely legal reasons directly or indirectly.China’s overseas investment is a kind of economic activity involved of multiple countries, subjects and interests and adjusted by two legal systems of both domestic and international laws. Internally, Chinese overseas investment should abide by the Chinese law of overseas investment and domestic law of host countries. Externally, Chinese overseas investment is adjusted by the bilateral investment agreements, regional investment rules, and multilateral investment regulations. The series of legal problems due to this have made Chinese overseas investment at a loss, which is the direct reason of the failure of Chinese overseas investment. And the fact that China’s overseas investment legislation can’t keep up with the development pace of overseas investment practice and it can’t receive the legal protect from the international investment law system in time has been the accelerator to the failure of Chinese overseas investment. This paper in-depth studies and analyses the legal causes of Chinese overseas investment failure from two angles of domestic law and international law.The paper consists of Five Chapters:InstructionThe introduction part briefly introduces the research background of Chinese overseas investment, leads to the topic of this paper, and briefly points out the purpose and significance of this research. Charter I Overview of Chinese Overseas InvestmentThis chapter firstly defines the key concept of "Investment" and "Overseas Investment" on the jurisprudence and legal theory, gives a brief overview of the historical evolution of Chinese overseas investment, its present development situation, characteristics and limitations, and then leads to the conclusion of that the failure rate of Chinese overseas investment is higher than the success rate.Chapter Ⅱ Legal Environment of China’s Overseas InvestmentThis chapter focuses on the comprehensive introduction of legal environment of Chinese overseas investment, highlights the legislative principles of international investment law system, and mainly analyses law system related to Chinese overseas investment. Internally, analyses the legislation of Chinese overseas investment, law for foreign investment in host countries, divides the host countries into two series of developed country and developing country, and presents a comparison between those two. Externally, it introduces the international legal protection systems related to Chinese overseas investment, such as content and features of bilateral investment protection agreements, international investment regulations under WTO, regional investment rules and international conventions.Chapter III Empirical Analysis of the typical Cases of Chinese Overseas Investment and the Reflected Legal ProblemsThis chapter studies three typical cases of "Chinalco’s failure of acquisition of Rio Tinto Group","Huawei’s failure of acquisition of3Leaf Systems","COVEC’s huge loss of investment on the construction project of Poland’s A2highway", and analyses the reflected legal problems laying the groundwork for the study of the legal issues of Chinese overseas investment.Chapter IV Analysis of the legal issues in Chinese Overseas InvestmentThis chapter presents one by one study on legal causes of Chinese overseas investment failure from four views:legislation, law enforcement, judicature and observation of the law.Chapter V Legal Thinking and Suggestions on Chinese Overseas InvestmentThis chapter points out the suggestion to the Chinese overseas investment failure based on the summary of the above analysis, In addition to learning from legislation experience of foreign countries, perfecting the domestic legislation as well as the reasonable use of operational investment protecting system, Chinese investors should also consciously abide by the law and regulations during the process of overseas investment.