Leaning Towards a More Liberal Stance?: An Evaluation of Substantive Protection Provisions under the New ASEAN-China Investment Agreement in Light of Chinese BIT Jurisprudence

Abstract

In stark contrast to the explosion of bilateral investment treaties, multilateral movement in the field of international investment protection has been relatively slower and less significant. In the Asian region, the most recent multilateral achievement is the investment treaty signed by ASEAN and China. This article scrutinises major substantive standards such as national treatment, most-favoured-nation treatment, fair and equitable treatment, full protection and security, expropriation, and capital transfer by reference to Chinese investment treaty jurisprudence. A thorough comparative review indicates that, regardless of its economic and political significance, the treaty represents the more liberal stance both ASEAN and China have recently taken in offering substantive protection standards to foreign investors, which will facilitate investment, improve transparency of investment rules and regulations, strengthen cooperation in investment, and ultimately liberalise the investment regime in the whole ASEAN–China area.