From Europeanization toward Americanization: the shift of China’s dichotomic investment treaty-making strategy

Abstract

China has concluded a large number of international investment treaties (IITs) in the past decades. A historical and empirical review of Chinese IITs shows that China has adopted an untold dichotomic IIT-making strategy that is experiencing a gradual shift from Europeanization to Americanization. While China’s early IITs are mainly of “European style” featuring succinct contents and protection of investment, a few recent IITs are of “American style” featuring comprehensive contents, a high level of investment protection and broadened market access. Such a shift is mainly prompted by China’s reversed economic status vis-à-vis its IIT partner countries, and a refreshed need for the development of its highly export-oriented economy. While acknowledging the pros and cons of such a strategy shift, it is advised that China should carefully consider the normative convergence of the different styles of IITs and make concerted efforts to address the potential impacts of the strategy shift.