The Analysis Of The Regulation On SOEs In TPP

The Trans-Pacific Partnership Agreement?TPP?,which is pushed by American ex-president Obama,Once known as the high standard regional investment and trade agreements in the 21st century.TPP has significant influence on the international economy.“Non-commercialAssistance”,“Non-discriminatoryTreatmentandCommercial Considerations”and“Transparency”obligations put forward in the TPP State-Owned Enterprises?SOEs?and Designated Monopolies chapter have strict regulations on the State-Owned Enterprises.The“Non-commercial Assistance”obligation,the original provisions in the TPP,does not only requires that one TPP member`s SOE should not take harm to other members when it receives its government`s non-commercial assistance in investment activities,but also makes sure that one TPP member`s government,state enterprise or SOE should not have adverse effect on other members if it offers non-commercial assistance to SOEs in any investment or trade area.The“Non-discriminatory Treatment and Commercial Considerations”,as a matter of fact,gives expression to the principle of both the national treatment and most favored nation treatment,namely that while the SOEs acts in accordance with commercial considerations in its purchase or sale of a good or service,and at the same time,treat an enterprise of another Party no less favorable than the enterprises of the party themselves,of any party or of any non-party.The transparency has a requirement much higher and more detailed than any relevant regulations in the multilateral or bilateral agreements before TPP,it aims to normalize SOEs economic activities,especially in the situation that SOEs receive the non-commercial assistance,other Party have the sufficient right to know,so as to create an equitable and just economic background.In a word,the three obligations referred above are all built under the frame of competitive neutrality for the purpose to promote the fair economic activities between the SOEs and private enterprises,ensure that the government show no privilege to one between the two.Besides,TPP also gives the right of jurisdiction to the member`s court on the SOEs which is a covered target under the agreement,the court should act in an impartial manner.The regulation on the jurisdiction has a restriction on the sovereign immunity so that the SOEs receive the equal regulate to the private ones.The TPP`s sphere of effect is not only confined in the eleven contracting parties,but also effects the other countries including China.At present,China`s SOEs still have many shortcomings and is far from the standards demanded in the TPP.It lacks explicit regulations on the government subsidies.The information disclosure of SOEs is not complete.Due to the various areas and kinds the SOEs servicing in,it is difficult to make efficient supervision on them and which belongs to the definition under the TPP agreement.Last but not least,as China focuses on the sovereign immunity and take the contract as the exception in the jurisdiction on the SOEs,thus have difference with the TPP.However,after the TPP was signed,it doesn`t take effect successfully,on the contrary,it suffered a lot of counteradvice,even the new president Trump declared that the USA would withdraw from the TPP once after he was in office,at last,on January 23^rd,Trump signed the administrative order which declared USA withdraw from the TPP,meanwhile,Japan makes an active preparation to make TPP effect in domestic.whatever TPP will face in the future,its stipulations still have effect in the international trade area and still have reference value on the formulation of the bilateral or multilateral agreements afterwards.Based on this,China,where the SOE still play a crucial role in the economic area,is ought to take an active attitude to response to it.However,it means that what the best choice China should do is to carry out a series of specific reforms on its own SOEs referring to the high standards came up with SOEs in TPP,to regulate the government subsidies,improve the transparency of the information from SOEs,act effective supervision on them and make flexibility use of jurisdiction,rather than be anxious to be a member of TPP as soon as possible.Meanwhile China should take the initiative to advance negotiation with surrounding countries.All in all,what the China should do is to create a favorable international economic environment.