Regulation of State-Controlled Enterprises: An Interdisciplinary and Comparative Examination

Confronting the Challenges of State Capitalism: Trends, Rules, and Debates
1 From Neoliberalism to State Capitalism
2 Landscape of the State-Controlled Entities
3 The Rise of SCE and International Law
4 Overview of the Book
The Regulatory Framework of State Capitalism: Laws, Treaties, and Contracts
The Latest Regulatory Regime of SOEs Under International Trade Treaties
1 Introduction
2 Traditional Regulations
2.1 Global Regulations: GATT and WTO
2.2 Regional Regulations: The European Community Rules
2.3 Commonalities
3 New Regulations in Recent Years
3.1 US–Singapore FTA
3.2 TPP and CPTPP
3.3 NAFTA and USMCA
3.4 Transatlantic Trade and Investment Partnership and EU’s FTAs
3.5 Commonalities
4 Implications and Conclusions
Ways of “Control”: Changes and Implications from China’s Reform of State-Owned Enterprises
1 Introduction
2 China’s Reform of “Control”: A Mixed-Approach of State-Firm Relationship
2.1 The 2015 Guidelines and the Policies of SOE Reform
2.2 State Asset and Supervision: Various Institutions and Different Levels of Control
2.3 Public and Private Ownership: Control Transfers Both Ways
2.4 The Party’s Political Control
3 Implications for Better Governance of SCEs
3.1 For China’s Reformers: A Bumpy Road of De-control
3.2 For Transnational Regulators
The Legal Issues of “Going Global” and the Trans-nationalization of the Chinese Public-Private Partnership Model
1 Introductive Remarks: Legal Issues of “Going Global”
2 The Overseas Dimension of Chinese Enterprises and its Regulatory Framework
3 The PPP Legal Model in the People’s Republic of China
4 PPPs and FDIs: Harmonizing Legal Frameworks
5 The PPP as the Core of a “BRI Legal Order”
Elephant in the Room: On the Notions of SCEs in International Investment Law and International Economic Law
1 Introduction
2 State Instrumentality and Attribution in International Investment Law: A Dismal Science
2.1 Structural Test and Functional Test
2.2 On Lex Specialis
2.3 Extra-judicial Concerns of Attribution
2.4 Concluding Remarks
3 Interactions of the Notions of Public Body and Attribution in Economic Law
3.1 Neighbouring Ideas in International Trade Law
3.2 Neighbouring Ideas in Competition Law
4 Conclusion
Regulating Sovereign Shareholders: The Role of Securities Disclosures
1 Introduction
1.1 State-Centric Capitalism
1.2 The Hegemonic Rivalry
2 State Ownership of Corporations: National Security and Corporate Governance Implications
2.1 National Security Concerns
2.2 The Dynamic of Government Investment in Stock Markets
2.3 The Dynamic of National Security as Technological and Economic Dominance
2.4 Increased Sovereign Involvement in Capital Markets
3 The State as Controlling Shareholder
3.1 Sovereign Controlling Shareholders—Fundamentally Different
3.2 Increasing Risks of Instability, Inefficiencies, Moral Hazards and Corruption
4 Updating Existing Securities Regulation
4.1 Defining Foreign Governmental Investors
4.2 Suggested Modifications for Updated Regulation
5 Conclusion
EU Merger Control and China’s State-Owned Enterprises: Is Ownership Really Separate from Control?
1 Introduction—China’s Socialist Market Economy: A Sui Generis System of Governance
2 China’s State-Owned Enterprises and the EU Merger Control Regime
3 Principles of Legislative Drafting in China
4 The Role and Status of Chinese SOEs Under China’s Socialist Market Economy
5 Chinese SOEs and Investment Arbitration
6 The EU Foreign Investment Screening Mechanism: A New Complementary Tool to the EU Competition Law Regime?
7 Concluding Remarks
Economic and Institutional Expansion of State Capitalism
The Public Value Creation of State-Owned Enterprises
1 Introduction
2 SOEs: Rationales and Public Value
3 SOEs and the State-Market Dichotomy
4 The Strategic Triangle
5 Conclusion
Privatizations of State-Owned Companies and Justifications for Restrictions on EU Fundamental Freedoms: Past, Present and Future Perspectives
1 Introduction
2 Lessons from the Past: Golden Shares of Privatized Companies and Justified Restrictions on EU Fundamental Freedoms
2.1 The European Commission’s Strategy Towards Golden Shares
2.2 Efforts to Justify Restrictions on EU Fundamental Freedoms in the CJEU’s Golden Shares Case Law
2.3 Scrutinizing Justifications for Restrictions on EU Fundamental Freedoms in the CJEU’s Golden Shares Case Law
3 Recent Case Law on Privatizations and Justifications for Restrictions on EU Fundamental Freedoms: Associação Peço a Palavra
3.1 Introductory Comments on Associação Peço a Palavra
3.2 The Relationship Between Golden Shares and Tender Specifications Governing the Conditions to Which a Privatization Process of a State-Owned Company is Subject
3.3 Justification for Restrictions Resulting from Tender Specifications Governing the Conditions to Which a Privatization Process of a State-Owned Company is Subject
3.4 The Importance of Associação Peço a Palavra
4 Future Perspectives on the Privatizations of State-Owned Companies and Justified Restrictions on EU Fundamental Freedoms: Integrating Corporate Social Responsibility (CSR) into the Privatization Process
5 Conclusion
The Expansion of China's State-Owned Enterprise Sector Since the Global Financial Crisis: What Insights Do Official Statistics Afford?
1 Introduction
2 Was There an Expansion of the SOE Sector?
3 How Large is the SOE Sector Before and After the Expansion?
3.1 SOE Share in GDP: 2017
3.2 SOE Share in GDP: 2007
3.3 SOE Share in Employment
4 What Appear to be the Objectives of the SOE Sector Expansion?
4.1 Sectorial Structure of the SOE Sector Around 2017
4.2 Sectorial Structures of the Flow Compared with that of the Stock
4.3 A Closer Look at the Two Top “Winners”
4.4 Other Possible Objectives
5 How Was the SOE Sector Expansion Financed?
5.1 The Institutional Framework of SOE Finance
5.2 Are the FYC Balance Sheet Data Consolidated?
5.3 Was the SOE Sector Expansion Financed by Debt or Equity?
5.4 Was the SOE Sector Expansion Central or Local?
6 Summary of Findings
Re-imaging Development Finance: Sustainability, Catalytic Capital, and the Role of Sovereign Wealth Funds
1 Introduction
2 Mobilising Capital for Development: Puzzles and Paradoxes
3 DFI: Catalysing Inward Capital Flows
4 Sovereign Wealth Funds and Their Mandates
5 Sovereign Funds and Domestic Investment
6 Strategic Development Mandates and Institutional Governance
7 Operational Alpha: Leveraging Strategic Funds for Sustainable Development
8 A Concluding Postscript
Planning “Beside” and “Beyond” the State: Multinational Corporations as Anthropological Institutions of Global Economic Law
1 Introduction
2 MNCs as Anthropological Institutions of Economic Law
2.1 MNCs and the Market Society
3 Corporate Planning
3.1 Planning Hierarchy and Categories
3.2 Plans’ Structure and Content
3.3 MNCs, Planning and Contract
4 Legal Interactions Between States and MNCs
4.1 The Ethical Corporation: Corporate Social Responsibility and Enforcement of Ethical Standards
4.2 Antitrust Law and “Dynamic Efficiencies”
4.3 Investment Regulation
5 The Sovereign Wealth Funds: The State as a Global Entrepreneur
6 Conclusion
Sovereign Wealth Funds and Public Value Theory
1 Introduction
2 One: Measurement
3 Two: Collaboration
4 Three: Short-Termism
5 Four: Imagination
6 Five: Value Arbitration
7 The Public Value of SWFs
The Accountability of State Capitalism: Exploring the Forms of Liabilities
‘Un Somaro Piumato’ (‘A Befeathered Ass’)—Rethinking the Scope and Nature of State Liability for Acts of Their Commercial Instrumentalities: State-Owned Enterprises and State Owner Liability in the Post-global
1 Introduction
2 The Conceptual Challenge to the Traditional Arrangement
2.1 The ‘Deal’
2.2 Challenging the ‘Deal’
3 The Rise of Human Rights Torts
4 Conclusion
Corporate Social Responsibility with ‘Chinese Characteristics’ an Overview of the Obligations of Chinese State-Owned Enterprises
1 Introduction
2 CSR with ‘Chinese Characteristics’
2.1 Notions of ‘Social Responsibility’ in Political Regulation
2.2 ‘Social Responsibility’ (Shehui Zeren) as a Binding Duty in Party Regulations
3 Monitoring Compliance Through Party Organisations
3.1 The Composition and Role of Party Groups in State-Owned MNCs
3.2 CSR and the Inspection Tour System
4 Assessing Compliance Through Social Credit Mechanisms
4.1 The Limits of Conventional Reporting Mechanisms
4.2 Evaluation and Rating Through Big Data
5 Conclusion
National Security Review for Foreign Investment in China: A Transnational Evolution
1 The Evolution of China’s Security Review Mechanism for Foreign Investment: Toward a Unified Approach
1.1 The Embryonic Era: The Administrative Licensing Approach
1.2 The Trial Era: Approvals of Foreign Companies’ Access to Certain Industries or Sectors
1.3 The Rapid Development Era: Establishing a National Security Review Mechanism for Foreign Mergers and Acquisitions
1.4 The Systematic Era: Toward a Unified National Security Review Mechanism for Foreign Investment
2 Reasons for the Transition
2.1 The Internal Perspective
2.2 The External Perspective
3 Conclusion
Dispute Settlement Mechanisms in Foreign Investment Contracts with Central American State-Owned Enterprises
1 Introduction
2 The SOE Sector in Central America
3 ICE v. Chucás: The Case of Costa Rica
4 The Rest of Central America
4.1 El Salvador
4.2 Honduras
4.3 Guatemala
4.4 Nicaragua
4.5 Panama
5 Conclusion
From State-Controlled Enterprises to Investment Screening: Paving the Way for Stricter Rules on Foreign Investment
1 Introduction
2 State-Controlled Enterprises and Their Role in International Investment Law
2.1 Investments by Sovereign Wealth Funds
2.2 Investments by State-Owned Enterprises
3 Potential Risks to Host States by Means of Investments of SCEs
4 International Instruments Addressing State-Controlled Enterprises
4.1 Sovereign Wealth Funds Generally Accepted Principles and Practice or ‘Santiago Principles’ of 2008
4.2 OECD Guidelines on Corporate Governance of State-Owned Enterprises
4.3 OECD Declaration on Sovereign Wealth Funds and Recipient Country Policies of 2008
5 Investment Screening Mechanisms: Tackling Investments of SCEs
5.1 Why Choosing Investment Screening?
5.2 Domestic Legislations: Open Restrictions to Investments of SCEs?
5.3 EU Framework for Investment Screening: How Would it Work?
6 Conclusion
Investment Screening Mechanism (ISM) in Central and Eastern Europe (CEE): Case Study of Poland
1 Introduction
2 Historical Regulation 1982–2000
2.1 First Provisions on Foreign Entrepreneurs
2.2 New Opening
2.3 Inward FDIs Controls 1988–2000
3 Special Regimes
3.1 Real Estate Purchases
3.2 Special Economic Zones (SEZ)
3.3 Golden Share and Special Veto Acts
4 Hydrocarbons Production Restrictions 2014
5 New ISM Regime
5.1 2015 ISM Regime
5.2 2020 ISM
6 Conclusion
Political Support, Competitive Advantage, and the Regulation of State-Owned Enterprises (SOEs)
1 Introduction
2 The Competitive Distortions of SOEs
2.1 State Policies
2.2 SOE Goals
2.3 Resource Dependence
2.4 Governance Issues
3 Dynamic Considerations in the Evaluation of SOMNEs
3.1 Competitive Upgrading and Learning
3.2 Accelerated Internationalisation
3.3 Economic Transition
3.4 SOE Hybridisation
4 Implications for Screening and Regulation of SOEs
5 Conclusion
The End of European Naivety: Difficult Times Ahead for SCEs/SOEs Investing in the European Union?
1 Introduction
2 Increasing Role of SCEs/SOEs as Foreign Investors in the EU
3 The EU Screening Framework for FDI
3.1 SOEs Investors Under Spotlight
3.2 Broader Implications of the EU Regulation
4 Conclusion
Regional and Country Perspectives
Vietnam’s Reform of State-Owned Entities: Domestic and External Drivers
1 Introduction
2 Domestic Reforms
2.1 Gradual Transformation
2.2 A New Era for Vietnamese State Capitalism?
3 Vietnam’s FTAs Strategy and State Capitalism
3.1 CPTPP and EVFTA Influence on SOEs’ Regulation
3.2 Defining SOEs in FTAs
3.3 Competitive Neutrality
3.4 Transparency
3.5 Technical Assistance
4 Conclusion
How to Handle State-Owned Enterprises in EU-China Investment Talks
1 Introduction
2 The EU-China Investment Relationship
3 What Is Special About SOEs? A Comparison Between the EU and China
3.1 Chinese SOEs: Bigger, More Pervasive and More Dominant than Their EU Counterparts
3.2 The Special Environment for Chinese SOEs
3.3 Will Global Consumers Benefit from Chinese SOEs? Not Necessarily
3.4 Should the Focus Be on SOEs When Looking at Market Dominance and Its Consequences?
4 The EU’s Concerns About Chinese SOEs: Is It Seeing the Whole Picture?
5 European Companies Investing in China
6 Policy Suggestions for the European Union
State-Owned and Influenced Enterprises and the Evolution of Canada’s Foreign Direct Investment Regime
1 Introduction
2 Historical Evolution of Canada’s Foreign Investment Regime
3 Canadian State Enterprise in Transition
4 Concerns Over State-Owned and Influenced Investors
5 Conclusion
FinTech Regulation and Its Impact on State-Owned Companies in Europe
1 Introduction
2 FinTech: Definition and Importance for the International Economy
2.1 General Overview
2.2 FinTech and International Bodies
3 FinTech Regulation in Europe: An Overview
4 The Application of FinTech Regulation to State-Owned Entities: Some Reflections
4.1 SOEs and EU Law
4.2 FinTech and State-Owned Entities: Advantages
4.3 FinTech and State-Owned Entities: Risks
4.4 EU FinTech Regulation and State-Owned Entities
5 Conclusion
Chinese State-Owned Enterprises in Africa: Always a Black-and-White Role?
1 Introduction
2 Status Quo of Investment by Chinese SOEs in Africa
3 The Controversial Role of Chinese SOEs in Africa
3.1 Concerns of Investments by Chinese SOEs
3.2 Benefits Provided by Chinese SOEs
4 Regulatory Challenges of Investing in Africa by Chinese SOEs
5 Way Forward: Implication of China’s Internal and External Actions
Policy Framework on Procurement of SOEs in China
1 Introduction
2 Historical Development of the Procurement of SOEs
2.1 Phase I: Decentralised Procurement
2.2 Phase II: Focus on Centralised Procurement
2.3 Phase III: Refined Management of Procurement
3 Legal System of the Procurement of SOEs
3.1 Procurement of SOEs Under National Laws Adopted by the NPC
3.2 Procurement of SOEs Under Ministerial Regulations
3.3 Local Policies in Procurement of SOEs
3.4 Standards Issued by Social Organisations
4 Problems in the Procurement of SOEs
4.1 Inconsistencies in the Application of the Laws
4.2 Main Body of SOEs is not Clearly Defined
4.3 Open Bidding is Abused
5 Development of SOEs Procurement
5.1 Procurement of SOEs Accelerates Docking with International Rules
5.2 Procurement of SOEs Accelerates Electronic Development
5.3 Non-bidding Procurement of SOEs Will Be More Standardised
5.4 Introducing e-Commerce in Procurement of SOEs
Port and Rail Investments: Reform of Chinese Regulations, Paradigm Shift of Chinese State-Controlled Entities and Global Freedom of Investments
1 Introduction
2 Reform of Chinese Regulations on Port and Rail FDIs
2.1 Toward a More Simplified and Efficient Outbound FDIs Regime
2.2 Toward a More Open Inbound FDIs Regime Enhancing Reciprocal Market Access
2.3 Toward a More Decentralized and Flexible Chinese Port Governance
3 Paradigm Shift of SCEs Toward Higher Transparency and Greater Accountability
3.1 Sovereign Wealth Funds (SWFs)
3.2 State-owned Enterprises (SOEs)
4 Interaction of Chinese SCEs with the US, EU and BRI States
4.1 The United States
4.2 The European Union
4.3 BRI: Turkey
4.4 BRI: Nigeria
4.5 BRI: Djibouti
4.6 BRI: Pakistan
4.7 BRI: Sri Lanka
5 Conclusion
Appendix
Chinese Enterprises and Investments in the Arctic: Implications for the Development of the Polar Silk Road
1 Introduction
2 China’s Approaches to the Development of Polar Silk Road
3 Chinese Investments in the Arctic
3.1 An Overview
3.2 Russia
3.3 Finland
3.4 Norway
3.5 Iceland
3.6 Greenland
4 Chinese Enterprises in the Arctic: Challenges and Solutions
5 Conclusions