National Treatment for Foreign Investment in China: A Changing Landscape

Abstract

The national treatment standard has become an important feature in both domestic and international legislation, but China was historically reluctant to grant such treatment due to its former planned economy. However, as China seeks to integrate further into the world, economically and otherwise, a recent policy shift can be identified with regard to national treatment. This article examines this shift, first, by discussing China’s changing policy toward foreign direct investment. The article then analyses the establishment and development of national treatment in China in both its domestic legislation and international investment treaties. Recent measures to eliminate ‘superior national treatment’ in China’s domestic legislation are also examined, as well as China’s changing approach in international investment law. Finally, the article concludes with a discussion on the future agenda of China’s national treatment policy with particular reference to the ongoing bilateral investment treaty negotiations with the European Union and the United States.