The Legal Framework of EU-China Investment Relations: A Critical Appraisal (with a Foreword by Professor Sir Elihu Lauterpacht) (China and International Economic Law Series)

EU investment in China has increased dramatically since the early 1990s and is poised to increase further in light of China's recent accession to the World Trade Organization. This book explores and critically appraises the existing legal framework governing EU-China investment relations, particularly EU investment in China. The current legal framework is composed of Chinese law, EU law and applicable international law. But the Chinese law is unsystematic and hard to discover and the EU has acquired only shared external investment competence which is vaguely defined. The applicable international treaties are incomplete, incoherent, or either too general or too specialized. Besides this, the international fora to settle investment disputes are still not readily available. Furthermore while law has played a very important role in decision-making by EU investors, the Chinese legal system is generally perceived as ineffective and lacking in effective enforcement of court and arbitration decisions. What the book demonstrates is that the time is ripe for a new international legal framework for foreign investment in China, and that as EU-China economic and political relations continue to improve, construction of such a framework is not only necessary, but also possible. "EU investment in China has increased dramatically since the early 1990s and is poised to increase further in light of Chinas recent accession to the World Trade Organisation. This book explores and critically appraises the existing legal framework governing EU-China investment relations,particularly EU investment in China. The current legal framework is composed of Chinese law, EU law and applicable international law, but the Chinese law is unsystematic and hard to discover and the EU has acquired only shared external investment competence which is vaguely defined. The applicable international treaties are incomplete, incoherent, or either too general or too specialised. Besides this, the international fora to settle investment disputes are still not readily available. Furthermore while law has played a very important role in decision-making by EU investors, the Chinese legal system is generally perceived as ineffective and lacking in effective enforcement of court and arbitration decisions. What the book demonstrates is that the time is ripe for a new international legal framework for foreign investment in China, and that as EU-China economic and political relations continue to improve, construction of such a framework is not only necessary, but also possible."--Bloomsbury Publishing. EU investment in China has increased dramatically since the early 1990s and is poised to increase further in light of Chinas recent accession to the World Trade Organisation. This book explores and critically appraises the existing legal framework governing EU-China investment relations, particularly EU investment in China. The current legal framework is composed of Chinese law, EU law and applicable international law, but the Chinese law is unsystematic and hard to discover and the EU has acquired only shared external investment competence which is vaguely defined. The applicable international treaties are incomplete, incoherent, or either too general or too specialised. Besides this, the international fora to settle investment disputes are still not readily available. Furthermore while law has played a very important role in decision-making by EU investors, the Chinese legal system is generally perceived as ineffective and lacking in effective enforcement of court and arbitration decisions. What the book demonstrates is that the time is ripe for a new international legal framework for foreign investment in China, and that as EU-China economic and political relations continue to improve, construction of such a framework is not only necessary, but also possible. Preliminaries......Page 1 Foreword......Page 5 Acknowledgements......Page 6 Contents......Page 9 List of Abbreviations......Page 19 List of Tables......Page 22 List of Charts......Page 24 List of Cases......Page 26 List of Treaties and other International Legal Instruments......Page 28 List of Chinese and EC Legislation......Page 34 Introduction......Page 37 1 Chinese Law on Inward Investment......Page 67 2 EU Law on Outward Investment......Page 91 3 International Law Governing EU Investment in China......Page 119 4 Admission......Page 151 5 Standards of Treatment......Page 182 6 Expropriation and Compensation......Page 213 7 Settlement of Disputes......Page 241 8 The Current Legal Framework of EU Investment in China The Question of Effectiveness......Page 283 9 Towards a New International Legal Framework of EU China Investment Relations......Page 303 10 The Legal Framework of Investment Relations between China and the New EU Member States......Page 333 Appendix I Questionnaire on Law and European Investment in China......Page 365 Appendix II: Scores Allocated to Questionnaire Responses to the Effectiveness of FDI Legal System in China......Page 372 Bibliography......Page 375 Index......Page 395