The Potential EU-China BIT: Issues and Implications

Abstract

This article attempts to discuss the issues and implications of the potential bilateral investment treaty between the EU and China, the negotiation of which was recently launched. After briefly exploring the current legal framework governing mutual investment between China and EU, including the developments after the Treaty of Lisbon, it focuses on the general and specific issues that may be involved in the potential BIT including the regulation of State Owned Enterprises, national security review, pre-establishment national treatment, transparency and exhaustion of local remedy. The paper concludes that the EU-China BIT will help enhance the EU-China bilateral investment relations, improve the legal framework of China and contribute to the development of global international investment regime.