ABSTRACT
This chapter discusses the status of Chinese state-owned enterprises (SOEs) in investor-state dispute settlement from a European perspective. It analyzes the process of reform of Chinese SOEs, highlights the role and status of Chinese SOEs within China’s system of governance and economic model to better understand the unprecedented challenges posed by the companies to the system of investment arbitration. The chapter suggests that the establishment of a common national security review mechanism at European Union (EU) level could offer a useful complementary tool in order to deal more coherently with the concerns arising in the area of investment arbitration from the sui generis status of Chinese SOEs. The challenges posed by the investment activities of Chinese SOEs in strategic sectors of EU member states have huge political significance, not only for the future of EU-China relations but also for the EU system of governance.
