This chapter assesses whether the adoption of the Investment Facilitation for Development (IFD) Agreement would bring a transformative change to the World Trade Organization (WTO) and analyzes its relationship with WTO agreements related to trade in goods and intellectual property rights. The study finds that rules under existing WTO agreements already apply to measures related to investment to some extent, despite the long-time reluctance of WTO members to introduce investment rules. The IFD Agreement would complement existing WTO agreements and contribute to enhanced transparency and streamlined administrative procedures and requirements. As international transactions expand beyond traditional trade in goods to services and intellectual properties, the multilateral rules under the General Agreement on Tariffs and Trade (GATT) and the WTO have evolved to cover such areas. The IFD Agreement is seen as another step in the evolutionary development of the WTO, rather than a transformative change. Formal negotiations on the IFD Agreement began in September 2020.

This chapter investigates whether China assumes the role of a rule-taker, acts as a rule-maker or even breaks with the system governing foreign investment. Given its significant foreign investment flows and economic and political clout, a better understanding of China’s ideas for and potential role in the ongoing reform of global investment governance is highly relevant. An analysis of China’s international investment agreements shows that China acted as a rule-taker by broadly accepting the templates of its treaty partners, while clinging to a number of defensive positions. The most recent and significant international investment agreement negotiated by China, the Comprehensive Agreement on Investment, signed in principle with the EU, seems to be following a template that largely reflects the preferences of the EU. China is also a supporter of the World Trade Organization negotiations on investment facilitation. China’s role in the Investment Facilitation for Development (IFD) Agreement negotiations should be characterized not so much as a thought-leader but as a key promoter of dialogue and negotiations.

This chapter investigates whether China assumes the role of a rule-taker, acts as a rule-maker or even breaks with the system governing foreign investment. Given its significant foreign investment flows and economic and political clout, a better understanding of China’s ideas for and potential role in the ongoing reform of global investment governance is highly relevant. An analysis of China’s international investment agreements shows that China acted as a rule-taker by broadly accepting the templates of its treaty partners, while clinging to a number of defensive positions. The most recent and significant international investment agreement negotiated by China, the Comprehensive Agreement on Investment, signed in principle with the EU, seems to be following a template that largely reflects the preferences of the EU. China is also a supporter of the World Trade Organization negotiations on investment facilitation. China’s role in the Investment Facilitation for Development (IFD) Agreement negotiations should be characterized not so much as a thought-leader but as a key promoter of dialogue and negotiations.