The Influence Of Bilateral Investment Treaty On China's Foreign Direct Investment

Since President Xi Jinping formally proposed"the Belt and Road"major initiative to the world in2013,“the Belt and Road”initiative have become the most important strategic measures at the national level in China.As a systematic project,the construction of“the Belt and Road”is to adhere to the three principles of cooperation,co-construction and sharing,actively promote the strategic docking between China and countries along the route,and at the same time seek new development momentum for our economy and expand China's influence and appeal on a global scale.The core purpose of“the Belt and Road”is to achieve the goal of sharing China's economic development results through investment in various construction projects along the route.The bilateral investment agreement has created a healthy and secure investment platform for both parties through the protection of investment.At present,under the circumstance of the world trade protectionism and anti-globalization,China has always adhered to opening up to the outside world,actively promoted economic globalization,and promoted trade and investment liberalization and facilitation.2018 is China's 40~thh anniversary of the reform an opening up.It is also the 5~thh year of“the Belt and Road”initiative.China will also continuously update its investment methods and investment scope for countries along“the Belt and Road”.It can be said that strengthening"the Belt and Road"invesement is timely and promising.At present,under the background of promoting“the Belt and Road”initiative approaching to the depths,based on the analysis of the existing literature,this paper fully analyzes the mechanism of the impact of bilateral investment agreements on China's foreign direct investment.Furthermore,it analyzes the history and current situation of China's BIT with countries along“the Belt and Road”Initiative,and then describes and analyzes the current situation of China's foreign direct investment under“the Belt and Road”to show that countries along“the Belt and Road”are becoming more and more Become an important region for China's foreign direct investment.In the process of combing the literature and analyzing the status quo,it is found that the development of countries along“the Belt and Road”is extremely uneven.The difference in the degree of development will have a great impact on China's foreign direct investment.This paper selects panel data of 68 countries along“the Belt and Road”from 2005 to 2017,draws on the extended gravity model and investment location selection model,and adds dummy variable BIT and a series of control variables(host country system level,market size,labor cost,natural resource endowment,technical resource endowment and trade openness)to the model to study bilateral investment agreements for the impact of foreign direct investment of China.Through the regression results of the fixed effect model,it is found that the bilateral investment agreement can promote China's foreign direct investment to the countries along“the Belt and Road”,and there are obvious national differences in this promotion.For countries with high economic development,bilateral investment agreements have a small role to promote.For countries with low economic development,bilateral investment agreements have a greater role in promoting.After further analysis,it was found that this difference was caused by the difference in the level of the national system along“the Belt and Road”,and the bilateral investment agreement had a certain substitution effect on the institutional level of the countries along the line,that is,when the system level was low,bilaterally The signing of investment agreements can compensate for the lower institutional level of the host country and thus promote our country's foreign direct investment in these countries.Through the research,this paper finds that although China has signed bilateral investment agreements with most countries along“the Belt and Road”,these agreements cannot protect China's overseas investment for various reasons.Therefore,these bilateral investment agreements need to be based on new ones.International investment situation is updated and improved;China needs to strengthen the cooperation of“the Belt and Road”national think tanks in order to better guide the development direction of“the Belt and Road”initiative;China needs to further improve the foreign direct investment risk assessment system to ensure that investment can be prevented;the current trade between China and the countries along“the Belt and Road”Initiative Cooperation needs to be further expanded to enhance the level of trade facilitation and thus promote the development of foreign direct investment.