Protection System for Investment Interests of Chinese Enterprises Abroad

92
DOI: 10.20542/0131-2227-2022-66-9-82-89
Qiuyu GAOYAN, qgaoyan1@gmail.com
National Research University Higher School of Economics, 17, Malaya Ordynka Str., Moscow, 119017, Russian Federation;
Peking University School of International Studies, Tencent Holdings Ltd “Belt and Road” Big Data Innovation Experiment Project, 5, Yiheyuan Road, Haidian District, Peking, 100871, China.

Received 26.02.2022. Revised 20.06.2022. Accepted 27.06.2022.

Acknowledgements. This article is a phased achievement of the 2020 National Social Science Fund of China (NSSFC) Major project «Reconstruction of “The ASEAN’s Centrality” within the framework of the Indo-Pacific Strategy and the study of the China–ASEAN joint construction of the “Maritime Silk Road”» (Project No. 20 & ZD145). 本文是2020年国家社科基金重大项目“印太战略下‘东盟中心地位’重构与中国—东盟共建‘海上丝绸之路’研究”(项目编号20&ZD145)的阶段性成果


Abstract. China’s direct overseas investment policy shows a significant shift from the “going global” strategy to the “One Belt, One Road” initiative. The active promotion of the government and the breakthrough initiative of state-owned enterprises became the hallmark of China’s direct investments abroad. The main advantage of direct investments of Chinese companies is the government guidance and service. The Chinese government provides political guidance and certain services to companies that implement their needs for investments abroad, helping them to go out into the outside world and securing their interests abroad. This is where the special advantages of the country come out. This article analyses legal documents, policies and regulations adopted by the Chinese government since 2000 in order to provide the protection for overseas investment of the national state and private enterprises. Only through the combination of the four components of the system, such as the adoption of laws and regulations, the implementation of regulatory policies, the adoption of preventive measures, and the use of crisis response mechanisms, it is possible to ensure the situation when the overseas investment of Chinese companies will continue to grow, and it will be possible to prevent or even avoid the adverse effects of perceived political risks in the country of investment and achieve the goal of ensuring “safe and sustainable” foreign investment. The author formulates political recommendations for the nowadays implementation of the specific advantages of the state in order to fulfill a better protection for the overseas investment interests of Chinese enterprises.

Keywords: Chinese enterprises, overseas investment, protection system, legal framework, regulatory policy, preventive measures, emergency coordination mechanism


REFERENCES

  1. Pei Changhong, Fan Ying. Country-specific advantages of Chinese enterprises’ foreign direct investment. China’s Industrial Economy, 2010, no. 7, pp. 45-54. (In Chin.)
  2. Tang Hao. Strategic thinking on the protection of China’s overseas interests. Modern International Relations, 2011, no. 6, pp. 1-8. (In Chin.)
  3. Ren Tao, Zhao Zhongjun. Thinking about the Construction of China’s International Police Cooperation Mechanism, Based on the One Belt, One Road Development Strategy. Journal of Beijing University of Police, 2017, no. 1, pp. 71-76. (In Chin.)
  4. Zhang Chunwang Zhang Xiuming, Hu Xiulei. Annual Report on Overseas Chinese (2020). Beijing, Social Science Literature Publishing House, 2020. 356 p. (In Chin.)

SOURCES

  1. 2013 statistical bulletin of China’s foreign direct investment. (In Chin.) Available at: http://fec.mofcom.gov.cn/article/tjsj/tjgb/201511/20151101190468.shtml (accessed 20.01.2022).
  2. Hu Jintao and other central leaders attended the 11th meeting of diplomatic envoys abroad. (In Chin.) Available at: http://intl.ce.cn/zhuanti/wj/yw/200909/16/t20090916_20030169.shtml (accessed 20.01.2022).
  3. The Third Plenary Session of the Eighteenth Central Committee of the Communist Party of China was held in Beijing. Xi Jinping delivered an important speech. (In Chin.) Available at: http://cpc.people.com.cn/n/2013/1113/c64094-23521588.html (accessed 20.01.2022).
  4. 2020 Statistical bulletin of China’s outward direct investment. (In Chin.) Available at: http://hzs.mofcom.gov.cn/article/date/202110/20211003207274.shtml (accessed 20.01.2022).
  5. The first meeting of the Central National Security Committee was held. Xi Jinping delivered an important speech. (In Chin.) Available at: http://www.gov.cn/xinwen/2014-04/15/content_2659641.htm (accessed 20.01.2022).
  6. Central foreign affairs work conference held in Beijing Xi Jinping delivered an important speech. (In Chin.) Available at: http://cpc.people.com.cn/n/2014/1130/c64094-26119225.html (accessed 20.01.2022).
  7. Outline of the Thirteenth Five-Year Plan for National Economic and Social Development of the People’s Republic of China. (In Chin.) Available at: http://www.gov.cn/xinwen/2016-03/17/content_5054992.htm (accessed 20.01.2022).
  8. Xi Jinping puts forward 8 requirements for promoting the Belt and Road Initiative, which will effectively promote financial innovation. (In Chin.) Available at: http://finance.china.com.cn/industry/hotnews/20160818/3864823.shtml (accessed 20.01.2022).
  9. Xi Jinping delivered an important speech at the opening ceremony of the special seminar for leading cadres at the provincial and ministerial levels. (In Chin.) Available at: http://www.gov.cn/xinwen/2019-01/21/content_5359898.htm (accessed 20.01.2022).
  10. The 14th Five-Year Plan for National Economic and Social Development of the People’s Republic of China and Outline of Vision 2035. (In Chin.) Available at: http://www.gov.cn/xinwen/2021-03/12/content_5592644.htm (accessed 20.01.2022).
  11. The Political Bureau of the CPC Central Committee decided to set up the Central National Security Committee. (In Chin.) Available at: http://www.gov.cn/ldhd/2014-01/24/content_2575011.htm (accessed 20.01.2022).
  12. Regulations on the safety management of institutions and personnel of overseas Chinese-funded enterprises. (In Chin.) Available at: http://www.mofcom.gov.cn/aarticle/ae/ai/201008/20100807086694.html (accessed 20.01.2022).
  13. China for the first time becomes the country with the largest number of embassies and consulates in the world. (In Chin.) Available at: https://sputniknews.cn/20191129/1030134222.html (accessed 20.01.2022).
  14. Opinions on strengthening the safety protection of institutions and personnel of overseas Chinese-funded enterprises. (In Chin.) Available at: http://www.gov.cn/xxgk/pub/govpublic/mrlm/200803/t20080328_32462.html (accessed 20.01.2022).
  15. Interim measures for joint annual inspection of overseas investments. (In Chin.) Available at: http://www.mofcom.gov.cn/article/swfg/swfgbi/201101/20110107351176.shtml (accessed 20.01.2022).
  16. Circular of the Ministry of Commerce and the National Bureau of Statistics on printing and distributing the statistical system for foreign direct investment. (In Chin.) Available at: http://www.mofcom.gov.cn/aarticle/b/g/200703/20070304418635.html (accessed 20.01.2022).
  17. Regulations on the administration of foreign contracted projects. (In Chin.) Available at: http://www.gov.cn/flfg/2008-07/28/content_1058146.htm (accessed 20.01.2022).
  18. National Security Law of the People’s Republic of China. (In Chin.) Available at: http://www.xinhuanet.com/politics/2015-07/01/c_1115787801.htm (accessed 20.01.2022).
  19. Explanation on the regulations of the People’s Republic of China on consular protection and assistance (Draft). (In Chin.) Available at: https://baijiahao.baidu.com/s?id=1595993610180783927&wfr=spider&for=pc (accessed 20.01.2022).
  20. Interim measures for the supervision and management of foreign investment of centralized enterprises. (In Chin.) Available at: http://law.esnai.com/do.aspx?action=show&controller=home&lawid=112931 (accessed 20.01.2022).
  21. Opinions on establishing a responsibility system for state-owned enterprises’ illegal operation and investment. (In Chin.) Available at: http://www.gov.cn/zhengce/content/2016-08/23/content_5101590.htm (accessed 20.01.2022).
  22. Measures for the supervision and management of foreign investment of centralized enterprises. (In Chin.) Available at: http://www.gov.cn/xinwen/2017-01/18/content_5160911.htm#1 (accessed 20.01.2022).
  23. Early warning about security risks and information notification system for overseas investment cooperation. (In Chin.) Available at: http://bgt.mofcom.gov.cn/article/c/d/201009/20100907121684.shtml (accessed 20.01.2022).
  24. Notification on information submission system about personnel of enterprises cooperating in investment placement overseas. (In Chin.) Available at: http://hzs.mofcom.gov.cn/article/zcfb/f/201012/20101207286052.shtml (accessed 20.01.2022).
  25. Guidelines for overseas security risk prevention of Chinese enterprises. (In Chin.) Available at: http://www.gov.cn/govweb/fwxx/content_2267987.htm (accessed 20.01.2022).
  26. Guiding opinions on the further guidance and regulation of the direction of foreign investment. (In Chin.) Available at: http://www.gov.cn/zhengce/content/2017-08/18/content_5218665.htm (accessed 20.01.2022).
  27. Guidelines for the safety management of institutions and personnel of Chinese-funded enterprises abroad. (In Chin.) Available at: http://fec.mofcom.gov.cn/article/jwaq/zcfg/201512/20151201198301.shtml (accessed 20.01.2022).
  28. Guiding opinions on strengthening the prevention of legal risks in the internationalization of central enterprises. (In Chin.) Available at: http://www.gov.cn/gongbao/content/2014/content_2600087.htm (accessed 20.01.2022).
  29. Guiding opinions on standardizing banking enterprises in going global and strengthening risk prevention and control. (In Chin.) Available at: http://www.gov.cn/xinwen/2017-01/26/content_5163560.htm (accessed 20.01.2022).
  30. 2020 Statistical bulletin of China’s outward direct investment. (In Chin.) Available at: http://hzs.mofcom.gov.cn/article/date/202110/20211003207274.shtml (accessed 20.01.2022).
  31. China actually set up a “four-in-one” mechanism of interconnected actions to protect overseas security. (In Chin.) Available at: http://www.scio.gov.cn/zggk/gqbg/2011/Document/920857/920857.htm (accessed 20.01.2022).
  32. Provisions on emergency response and handling of overseas security incidents in outbound investment and cooperation. (In Chin.) Available at: http://fec.mofcom.gov.cn/article/jwaq/zcfg/ (accessed 20.01.2022).
  33. Interim measures for emergency management of central enterprises. (In Chin.) Available at: http://www.gov.cn/jrzg/2013-03/15/content_2355103.htm (accessed 20.01.2022).
  34. Measures for the evaluation of business performance of persons in charge of central enterprises. (In Chin.) Available at: http://old.sasac.gov.cn/n2588035/n2588320/n2588335/c20166842/content.html (accessed 20.01.2022).
  35. China’s military strategy. (In Chin.) Available at: http://www.chinadaily.com.cn/interface/toutiao/1138561/2015-5-28/cd_20821000.html (accessed 20.01.2022).

For citation:
Qiuyu Gaoyan Protection System for Investment Interests of Chinese Enterprises Abroad. World Eñonomy and International Relations, 2022, vol. 66, no. 9, pp. 82-89. https://doi.org/10.20542/0131-2227-2022-66-9-82-89



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2024, vol. 68, No. 3
Topical Themes of the Issue:
  • Bretton Woods 2.0: Towards a New Global Financial Architecture
  • Transformation of the EU Political Party System on the Eve of the 2024 European Election
  • South Asia in Regional and World Politics
Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.