Study On The Host Country’s Legal Regulations Of State-owned Enterprises Overseas Investment

The topic of this thesis is “Research on the host country’s legal of state-ownedenterprises invest overseas”. In this thesis, the host countries’ legal regulation whenstate-owned enterprises invest overseas will be discussed, especially for the legal regulationof host country market access in-depth analysis, then combined with the status of China’sstate-owned enterprises overseas investment and make a targeted research on the host countrylegal regulations when China’s state-owned enterprises invest overseas. With thedevelopment of economic globalization, international capital flows and cross-borderoperations increasingly significant, the host country attract foreign capital inflows caneffectively compensate for the insufficient of domestic enterprise development funding,thereby contributing to national economic growth and development. But on the other hand,foreign investment will give the local enterprises a big challenge, if the host country allowsthe foreign investment develop freely, the host country’s economic development and evennational security may under threat. Therefore the world’s major countries have adopted certainlegal regulations to ensure that foreign investment will benefit the country. American andEuropean countries have established a comprehensive regulatory framework for foreigninvestment, make strict conditions for foreign investment, especially for the investment of theemerging economies, and a comprehensive national security review and antitrust review.recently developed countries, led by the United States, put forward the "competitiveneutrality" rules regulating the market competition of state-owned enterprises. Overseasinvestment in China started late, but developed rapidly. From the point of regionaldistribution, China’s state-owned enterprises overseas investment are mainly distributed inAsia and Africa. In these areas, the state-owned enterprises investment are generally popularand met less legal risks; but the overseas investment in Europe and North America face strictlegal regulations. Recent years, China’s state-owned enterprises’ direct investment inEuropean and American countries develop rapidly, but in the developing countries, they facesa regulatory risk of serious review. This thesis selects some European and Americandeveloped countries’ overseas investment regulatory scrutiny system to make a research, andbased on this, put forward some measures for our country’s state-owned enterprises whenthey invest overseas and face the host country’s legal regulations. The introduction part puts forward the topic and the significance of this research, andgives a clear statement of the literature review of articles, research method and researchobject. The thesis includes five parts:The first part defines the basic legal concepts like overseas investment, state-ownedenterprise, and make a data analysis of the current situation of the state-owned enterpriseoverseas investment of our country, points out that the characteristics and trend of overseasinvestment in China, then raises a topic that our country’s enterprises are facing legalchallenge form host countries when they invest overseas.The second part discusses the foreign investment market access restrictions form thehost country, they can be divided into three aspects: the access restrictions of the industryarea that can be invested, the access restrictions of the proportion and the accessrequirements of the form. Then this part will point out that our country’s state-ownedenterprises are facing strict market access conditions form host countries when they invest.The third part analyzes the European and American countries’ foreign investmentnational security review system, especially the national security review system of Australia,Canada and the United States. Then emphatically analyzes the special review forstate-owned enterprises, pointed out that our country’s state-owned enterprises are facing aparticular national security review when they invest to the European and America.The fourth part analyzes the antitrust scrutiny form the host countries and the neutralregulation that the state-owned enterprises are faced when they invest overseas, from theperspective of European and American countries’ antitrust law and competition law. Thispart mainly analyzes the application and characteristics of antitrust scrutiny, the definitionand trend of “competitive neutrality” regulation of state-owned enterprises. Then make acomprehensive analysis that state-owned enterprises will face more legal regulations whenthey invest overseas.The fifth part puts forward measures for state-owned enterprises on the basis of thelegal system of host countries and the characteristics of China’s state-owned enterprises. Themeasures can be divided into four parts: strategy preparation of the state-owned enterprises;the corporate governance of state-owned enterprises; the overseas investment regulation andlegal protection for state-owned enterprises in China; the position and function of China inthe international investment negotiation. And hope they can be helpful for the betterdevelopment of state-owned enterprises’ overseas investment of China.