Issues on SOEs in BITs

Abstract

The issue on state-owned enterprises (SOEs) has never gone away once China began sitting around the negotiating table, especially with the United States. Sixteen years ago, when China was expecting to enter the multi-lateral trading system, there were special sections for state trading enterprises in its accession protocol in accordance with Article XVII in GATT1994. While in bilateral investment treaty (BIT) negotiation with the US, which was reignited in 2008 and has undergone twenty-nine rounds of talks, the issue of SOEs was brought up to the table again and seemingly became a key point blocking the negotiation. However, with uprising economy scale and front-ranking position in global trade and investment, it seems unsatisfying of China to give the same commitments concerning SOEs as it did in WTO negotiation which was sixteen years ago. To put the BIT negotiation forward on the SOE issue needs new solutions