Research On Legal Issues Of Government-Controlled Investors Participating In International Investments

In the current era of economic globalization accelerating, international capital flows function as the blood pushing economic globalization. The investors from all countries competing and cooperating with each other in the world economic fields have promoted the prosperous development of international investment. Among these investors, government-controlled investors including state-owned enterprises, sovereign wealth funds, with their substantial strength, not only occupy the important position of international investment, but also attract much attention and doubt because of their governmental background and state-owned nature, which is different with those private investors. Aiming at these special characters, the host countries set particular legal provisions in their domestic legal systems and international investment treaties they participate in to regulate the international investment activities by government-controlled investors. China, an emerging economy with state-owned enterprises as the main force conducting investment outwards, should analyze and research in-depth the legal issues of government-controlled investors participating in international investment, in order to make a positive and effective response.In addition to the Introduction, this Article includes four parts.Part One is “the Current Situation of International Investment by Government-Controlled Investors”. This part firstly defines and illustrates the concepts related to government-controlled investors, then introduces briefly the development and investments by state-owned enterprises and sovereign wealth funds from different countries.Part Two is “the Legal Issues of Government-Controlled Investors in Host Countries”. This part analyzes three legal issues of government-controlled investors brought by host countries' law regarding the admission of foreign investment, national security review and antitrust review, which are the more restrictions on investment areas or sections, the stricter standard of national security review and the more sensitive attitude of antitrust review.Part Three is “the Legal Issues of Government-Controlled Investors in International Treaties”. This part analyzes the legal issues of government-controlled investors brought by international treaties from three perspectives: the legal position of government-controlled investors in international treaties may not be admitted, the investment disputes involving government-controlled investors may not be brought to ICSID and related international law-making activities with reference to competition neutrality.Part Four is “the Solutions to Deal with the Legal Issues of Government-Controlled Investors Participating in International Investment for China”. On the basis of analyzing the above legal issues, the proposals to deal with those legal issues and promote the international investments by Chinese government-controlled investors are given in this part, which include reforming the state-owned enterprises, perfecting the foreign investment legal system and participating in international law-making activities.From the perspectives of legal rules and practical operation, this Article comprehensively analyzes the legal issues confronted by government-controlled investors participating in international investments, and particularly analyzes the influences on Chinese government-controlled investors by these legal issues. This Article using literature analysis method, comparative analysis method and empirical analysis method, combining with the knowledge of law, economy and other subjects, makes further discussions on these legal issues on the basis of predecessors' research.