The BRICS countries and new international direct investment rules
The financial crisis led to profound changes in the global economic landscape, where the foreign direct investment (FDI) by enterprises from the BRICS countries saw a rapid increase. In the meantime, Western countries generally believe that the common feature of multinational corporations from the BRICS countries is that the governments play an important role in their business operations. That is how a number of large state-owned enterprises (SOEs) are established in certain strategically important industries. These state-owned enterprises, also known as “state-controlled entities”, have become an emerging force in international direct investment. In response to the rapid development of overseas M&As by multinationals based in the BRICS countries, the United States has started to adopt the third-generation trade and investment norms featuring pre-entry national treatment plus negative list as a strategic means for reshaping the international trade, investment, and world economic landscape under the guidance of the “sequential negotiation” strategy. The introduction of varied measures by the developed countries, in particular, the United States, in the formulation of international investment rules will inevitably affect the efforts of multinationals from the BRICS countries for overseas M&As.