ABSTRACT
This chapter examines the relationship between Chinese regulation of inbound and outbound investment and China's approach at the international level, through bilateral and multilateral treaties, to commitments on investment policy and practice. China, while encouraging inbound investment, maintains tight control over regulation of investment in China. At the same time, Chinese policy is also to encourage Chinese companies, both private and state-owned, to invest overseas. The Chinese government's approach to the issues of inbound and outbound investment highlights the difficulty of striking a balance between the right of states to control the flow of investment into their own territory with the expectation that their investors will be able to make investments in other states and enjoy appropriate rights and protections in connection with those investments.
