Research Plan

Table of Content

CHAPTER ONE3

INTRODUCTION3

CHAPTER TWO8

LITERATURE REVIEW8

Canadian investments in the Chinese economy8

CHAPTER THREE14

METHODOLOGY14

Literature Selection Criteria14

Search Technique14

REFERENCES15

Chapter One: Introduction

Canada and China began negotiation of a Foreign Investment Promotion and Protection Agreement in 1994. Negotiations were put aside until the completion of China's accession to the WTO, and then resumed in September 2004. Twelve rounds of negotiations have been held since then, with the last round having taken place in January 2010 in Beijing.

Canada's objective in these negotiations is to secure a high standard agreement with comprehensive scope and coverage and substantive obligations pertaining to national treatment, most-favoured-nation treatment, minimum standard of treatment, transparency, transfers and expropriation. Additionally, this Agreement should grant investors access to investor state dispute settlement that is governed by detailed rules in the Agreement on standing, procedural requirement and enforcement. While the existence of a FIPA should be a positive and important factor in investors' decisions on whether to invest in the territory of the other party, it will be but one of many factors. The main purpose of a FIPA is to ensure greater protection to foreign investors against discriminatory and arbitrary practices and to enhance predictability of the policy framework affecting foreign investors and their investments. The FIPA will preserve the right of both Canada and China to regulate in the public interest.

The stock of Canadian FDI in China was valued at C$3.58 billion at the end of 2008. Though current Canadian investment in China is modest, the potential for further investment is substantial. Canadian investment in China covers a broad range of sectors including transportation, biotechnology, education, finance, information technology, manufacturing, and natural resources. China ranks as one of the world's largest recipients of FDI, with an overall inward FDI stock of C$323.2 billion at the end of 2007. As China's economic importance continues to grow, it will remain a priority market for Canada. The United Nations Conference on Trade and Development (UNCTAD) Inward FDI Potential Index consistently ranks China as having a high potential for future direct investment.

The stock of foreign direct investment into Canada from China was C$2.75 billion at the end of 2008. Chinese firms are actively investing abroad and have expressed a strong interest in investing in Canada. Sectors of interest include natural resources, renewable energy, information and communication technology, food processing, pharmaceuticals and natural medicine, and advanced manufacturing.

The pieces of the Canada-China economic puzzle are starting to come together and the picture that emerges reveals a slowly developing but inevitably closer economic relationship between these two economies.

The People's Republic of China (excluding the Hong Kong Special Administrative Region) is Canada's fourth largest export market. In 2004, Canada's total merchandising exports of goods to China amounted to C$6.6 billion, an increase of 39% over 2003. Total merchandising imports from China increased to C$24.1 billion in 2004, up 30% over 2003. Canada ranks as amongst China's top 10 trading partners and amongst its top 10 export markets. But, given the evident importance of the Canadian and Chinese markets to each of these ...