Pre-establishment National Treatmentand Negative List

The deepened development of economic globalization has liberalized the international interaction out of the products, service, and intellectual property rights,attracting the world’s attention to the investment globalization.The lack of powerful and efficient multi-lateral investment treaties has made the bilateral investment treaties one of the best measures to protect the relevant investment activities around the world. For one thing, it can reduce the negotiation frictions, for another, it can look after the special interests of both sides.Each as the largest investing country and the host country in development country and developed country, China and the US have huge mutual investment, featuring economic complementarity and mutual reliance. However, the lack of Sino-US Bilateral Investment Treaty(hereafter referred to as BIT) has, to some extent, slowed the bilateral capitals, limiting the increase of bilateral investments.China has made a compromise in the Fifth round of Sino-US Strategic and Economic Dialogue, by promising that the bilateral negotiation will be based on Pre-Establishment National Treatment and Negative List, shedding a light on the successful signing of Sino-US BIT.From the US side, this will be a welcomed result,i.e.,the Chinese market will be further opened; from the Chinese side,this will be a great challenge to the reform of our current management mode of foreign capital and an excellent opportunity topolish our investment environment and protect our huge overseas investment. Starting from the Sino-US BIT negotiation, with the focus on Pre-Establishment National Treatment and Negative List, this essay explores their legal definitions,histories, and legalities. Based on the current management mode of foreign capital in other countries,the necessity as well as the merits and demerits of the management mode featuring Pre-Establishment National Treatment and Negative List has been analyzed. We hope that the final version of the Sino-US BIT can been concluded under the consideration of the status quo of both countries as well as the global trend of investment development. As for China, concerning the current situations, we should take our development strategy and future direction into consideration, in order to protect our core industries,safeguard our economic sovereignty and promote the free flow of the international investment.