CONTEMPORARY EURASIA VIII (2) ContEurVIII2 | Page 12

CONTEMPORARY EURASIA VIII (2)
economic, legal, and political implications of BITs, from the developing
country’s perspective, BITs are a concession to treat investments in an
agreed upon manner that has the potential to promote higher investment
and capital flow into the country’s economy. 30
Broadly speaking, China has been one of the most active BIT
makers in the world with over 129 signed BITs, only second to Germany.
Through this practice, Chinese BITs have undergone four stages of
development:
1.1982-1989 that started with the launch of the BIT program,
2. 1990-1997 that started with China’s accession to the ICSID,
3. 1998-present starting from the Going Global policy. During this
period the treatment standards and ISDS clause have gradually shifted
from restrictive standards towards more liberal ones. 31 China remains a
classic example of growing the country utilizing foreign direct
investments, and the successful start of liberalization encouraged the state
to continue this through gradually removing the restrictive nature of
Chinese policies, implementing laws and regulations for foreign
properties, investments, and enterprises. The changes in domestic law and
the bilateral investment program implemented by China have greatly
affected its overall attractiveness for foreign investors. 32
This change has also affected Chinese practice, where the BIT
signed with Armenia 33 (1992) has a number of substantial differences
compared to the most recent Chinese BITs. Chinese BITs over decades
have seen considerable change and evolution, changing from restrictive
investment treaties to more liberal ones. The main drivers of change can
be divided into three main parts:
1. domestic drivers of change, e.g., “opening up policy” and
inbound investments; “going global policy” and outbound investments;
the rise of the economic competitiveness of Chinese public and private
enterprises, 34

30
See generally, Kate Hadley, "Do China's Bits Matter-Assessing the Effect of China's
Investment Agreements on Foreign Direct Investment Flows, Investors Rights, and the
Rule of Law," Geo. J. Int'l L. 45 (2013): 255-321; Büthe, Tim, and Helen V. Milner. "The
politics of foreign direct investment into developing countries: increasing FDI through
international trade agreements?" American Journal of Political Science 52.4 (2008): 741-762;
31 Norah Gallagher and Shan Wenhua, Chinese investment treaties: policies and practice,
(Oxford: Oxford University Press Vol. 35, 2009).
32 Kong Qingjiang, "Bilateral investment treaties: the Chinese approach and practice,"
Asian YB Int'l L. 8 (1998):106.
33 China-Armenia BIT (1992).
34 See e.g., Guiguo Wang, "China’s Practice in International Investment Law: From
Participation to Leadership in the World Economy." In Looking to the Future, Brill, 2010,
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