To Improve The Legal Protection System Of Chinese Foreign Direct Investment Based On "the Belt And Road Initiative"

With the gradual deployment of the “Belt and Road” framework,various economic,legal,and cultural activities have become the hottest topic nowadays.The “One Belt and One Road” framework is Chinese new trade channel and economic and trade cooperation network with neighboring countries(regions)in Central Asia,Eastern Europe,and Southeast Asia.It covers more than 65 countries and regions along the route.And the win-win cooperation has received positive responses from all countries.As the strategic layout of China's new round of high-level opening up and high standard reforms,the “One Belt and One Road” is an important opportunity for China to promote the export of large-scale capital,as well as a challenge in the new era,new pattern,and new stage.Under the background of the country's vigorous promotion of the “Belt and Road Initiative”,Chinese company has come to a new round of “going out” booms.“Going out” is also important for Chinese economy to influence the world economic structure and contribute to the development of the world economy.Currently,China is in an ascending period of ever-increasing scale of foreign investment,the investment region continues to expand,and the investment field continues to expand.However,with the increase in the scale of investment,there have been problems such as inadequate management system,unreasonable investment structure,and inadequate prevention of overseas risks.Foreign investment involves complicated legal issues in the access phase,operation phase,and exit phase.During this process,related guarantee services are an extremely important part.However,China has not yet formed a systematic protection mechanism to prevent and respond to overseas investment risks.Compared with the scale of investment,Chinese related security mechanisms are far from perfect.Most of the countries along the “Belt and Road” are developing countries or underdeveloped countries.So the infrastructure construction is relatively backward and the demand for manufacturing industry is relatively large.At the same time,many countries along the route are facing the problems of “financing difficulties,expensive financing,and huge capital gaps”.This is both an opportunity and a challenge for Chinese companies.According to statistics released by the Ministry of Commerce,in2017,non-financial direct investment by Chinese enterprises to 59 countries along the“Belt and Road” reached US$14.36 billion,an increase of 3.5 percentage points from the previous year.With the expansion of investment scale,the field of foreign investment is also continuously expanding.Combined with the particularity of the investment environment of countries along the “One Belt and One Road,” Chinese foreign investment is bound to involve the construction of national infrastructure and the provision of public goods.At the legal level,it will also involve intellectual property protection,transparency,multilateral cooperation,and national treatment and MFN treatment.Chinese foreign investment is gradually opening up a new pattern,but the rapid development of overseas investment performance is also accompanied by a series of risks that cannot be ignored.The host country's investment environment along the “One Belt and One Road” is quite different.The economic foundations of many emerging economies are unstable and political risks remain.Coupled with the special legal systems and cultural environment along the country,all kinds of potential risks have become issues that we must pay attention to.The Chinese investors referred to in this article refer only to investors in the Mainland of China(excluding investors in Hong Kong,Macau,and Taiwan).The overseas investment discussed in this article refers only to the direct investment made by investors in other countries and regions,and does not include indirect investment in purchasing securities such as stocks and bonds and other financial instruments and managing or controlling related industries.The overseas investment legal protection system discussed in this paper refers only to the legal protection at the government level,that is,a comprehensive system that eliminates non-commercial risks through various protection or supervisory measures,and does not include risk prevention and self-protection from the perspective of investors.According to the current legal practice and other international experience in China,combined with the special legal environment in the context of the “Belt and Road Initiative,” China needs to strengthen its efforts in terms of the improvement of domestic laws,the establishment of bilateral and multilateral agreements,and the rational use of international rules.Investment protection.The research focus of this topic is the improvement of Chinese foreign investment protection mechanism under the “Belt and Road Initiative”.First,based on the different stages of access,operation and exit,combined with the special national conditions of the countries along the route,the risks of countries(regions)along the“One Belt and One Road” will be analyzed.It will also analyze representative countries(regions)along the “Belt and Road”,such as East Asia Thailand and Indonesia,West Asia Syria,South Asia India and Europe Russia.These countries have their own characteristics in regard to foreign investment legislation.Chinese enterprises should be targeted to understand and prevent risks.In terms of access,the“positive list” and “negative list” all have important implications.At the same time,countries are likely to have very different review procedures.In addition,the relevant legislation of developing countries may restrict the industries that are vital to the country.In the operational phase,some countries are extremely concerned about the change in the proportion of foreign companies' investment,and taxation policies and the protection of intellectual property rights will also become very important.In addition,developing countries and underdeveloped countries have great risks in terms of nationalization and collection.The factors of political instability must also be considered.The inherent market risks,including financial risks,currency risks,exchange rate risks,etc.It cannot be overlooked that research on these aspects will have a major impact when it comes to how to cope with the risks and how to deal with them,including the resolution of investment disputes,how to request relief,and proper exit mechanisms.To prevent and respond to overseas investment risks,we must first improve domestic relevant legislation and form a system that meets requirements and is effective.At present,the international investment insurance legislation in the international community can be broadly divided into three types: the first is the bilateral legislative model,represented by the United States;the second is the unilateral legislative model,represented by Japan;the third is the mixed legislative model.Our country currently adopts the unilateral model.Since the end of 2002,China started overseas investment insurance business,and started late.In addition,the overseas investment policy system is not perfect,resulting in almost no legislation of our country's overseas investment insurance system,mainly by taking over Chinese overseas investment insurance.The China Export Credit Insurance Corporation's "Guarantee's Guide to Insurance" provides guidance.The unilateral model has drawbacks that are not conducive to the realization of the subrogation right and the diplomatic level.At the same time,Chinese risk assessment and early warning methods should also be enriched.At present,Chinese risk assessment is mainly issued by the Ministry of Foreign Affairs twice a year,“Chinese overseas security risk assessment report”,plus“Guide to Consular Protection and Services Overseas Chinese”.Corporate investment guides.Generally,judging from China's current relevant legislation and mechanisms,it is extremely imperative for us to draw on international experience and adapt our national conditions to change the domestic legislation protection model.While improving its domestic legal system,how to adapt and apply relevant international rules and how to establish a reasonable guarantee mechanism for domestic companies in bilateral and multilateral investment agreements is another important aspect in preventing and responding to the risks of Chinese foreign investment.In terms of international relevant rules,the current multilateral investment documents include binding international multilateral investment treaties.At the same time,there are international documents that have only guiding significance or model legality,such as the Foreign Direct Investment Treatment Guidelines.Diversified international rules and models are both options for us to achieve safeguards.How to make better use of international rules,especially in the context of the “One Belt and One Road”approach,is very important.In addition,countries will also protect their overseas investment by signing a series of bilateral or multilateral agreements,such as bilateral investment protection agreements.These bilateral and multilateral treaties can better protect the interests of domestic companies in terms of safeguarding national treatment,expropriation and compensation,and avoiding double taxation.If we can take measures to broaden the scope of application of various articles and form a more unified and effective system,we will Many countries along the route are of great significance.Effectively preventing risks,reasonably avoiding risks,properly coping with risks,and protecting the interests of the country are the purpose and end-result of this thesis research.The construction of the “One Belt and One Road” is undoubtedly the driving force for the development of Chinese foreign investment,but it must be based on the premise of stable development.I will combine current affairs hotspots with reference to the experiences of various countries and based on the actual situation of the country;under the support of the data and data,and under the consideration of scholars' useful perspectives,I will elaborate on the construction of Chinese foreign investment protection mechanism in the context of the “Belt and Road” initiative.Analyze the risks faced and how to prevent and respond to them.And strive to draw more scientific and practical conclusions and personal recommendations.