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The Energy Charter Treaty and China: Member or Bystander?

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image of The Journal of World Investment & Trade

The security of energy investment is becoming an increasingly important factor for China’s harmonious economic development. Without a specific agreement concerning the protection and promotion of foreign energy investment between China and other states, to utilize the Energy Charter Treaty would be a better and feasible choice. This study will first present a brief overview of the legal protection of China’s OFDI, followed by an overview of investment protection and promotion under the ECT, and then it assesses the positive implications of China being a member state of the ECT together with the potential risk. A comprehensive discussion illustrates that accession will be a desirable result for China. Finally, it goes further to proclaim that an Asia-Europe Energy cooperation legal framework will be on its way provided that China enters into the ECT.


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