Protection of Polish investors under the China-Poland bilatera l investment treaty

Abstract

The article explores investment protection under Chinese international investment agreements (IIAs), especially under the China-Poland bilateral investment treaty (BIT). As a state that both imports and exports foreign direct investment (FDI), China currently promotes a balanced and safeguarded BIT that protects its increasing oversea investments and preserves the necessary space to regulate in the public interest. The Chinese government remains reluctant to be directly involved in investment arbitration as a respondent, while Chinese investors are active in taking advantage of the IIAs regime. The China-Poland BIT is relatively outdated in terms of investment protection, promotion, socialization and dispute settlement, compared to China’s recent treaty practices and new developments in global investment governance. In terms of the investment protection effects of BITs, China is seemingly in a more urgent position to update the China-Poland BIT. However, if we evaluate the overall effects of a modernized BIT on investment promotion, regulation and dispute settlement, an updated China-Poland BIT will fit the interests of both the Polish and Chinese governments. Notwithstanding the on-going negotiation between the EU and China, the article aims, apart from presenting the Chinese practice regarding BITs, to describe de lege lata the state of protection offered to Chinese and Polish investors under the China-Poland BIT.

Keywords: China-Poland BIT, Investment Protection, Investment Arbitration, Inclusive and Managed Liberalization