Nation 'can lead' in FDI rules

By Li Jiabao (China Daily) Updated: 2014-05-27 07:12

"Investment is the core of global economic activity, and the importance is increasing. But so far, the world has had no unified, coherent, transparent and stable framework for investment governance.

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"The timing for establishing a framework is more mature than a decade ago, as developing economies account for more than half of the global FDI flow. The launch of the framework won't take long, since countries are advocating the initiative," Ge said.

He noted that China should play a "more active role in building up the framework" in view of its importance in the global economy and investment.

"China must take the leadership role, and a more active role in forging the framework. It should be the initiator and help define the topics and negotiation modalities of the framework, which will win it a louder voice in global rule setting and enhance its global competitiveness," Ge said.

"There is huge potential for China's FDI outflows, but China's overseas investment faces unfair and discriminatory treatment."

China is holding bilateral investment treaty negotiations with the US and the European Union, using the model of the "negative list", which specifies bans and restrictions on types of foreign investment.

"The 'negative list' approach is the ideal model for negotiating a global investment framework. China's domestic reforms and its BIT talks with the US and the EU are in line with the building of the global framework," Ge said.