CYIL vol. 9 (2018)

ANRAN ZHANG CYIL 9 ȍ2018Ȏ binding nor compulsory, the EC plays a role as a supervisor and investigator. For example, according to this regulation, the MS shall notify the details of existing screening mechanisms, the amendments or newly adopted screening to the EC; the MS shall also provide annual reports to the EC on the screened FDI, which shall cover every detailed aspect. Moreover, on the basis of security and public order, the non-exhaustive list of screening factors suggests the MS consider: “a) Critical infrastructure; b) Critical technologies; c) Security of supply and critical inputs; d) Access to or possible control over sensitive information; and e) Whether the foreign investor is controlled by the government of a third country, including through significant funding.” In general, the EU proposes a series of investment policies by setting up its own standard which the EU considers to be modern and valued world over. This standard is the centre of all other provisions made by the EU, which means any international investment-related arrangements shall be made considering this standard. This approach aims to have well- established investment provisions, but it lacks making all the practical considerations of all the MS. Located in the heart of Europe, the Czech Republic benefits from its geographic advantage. The economy of the Czech Republic is very strong but not the strongest among the EU member states, but it is still stronger than other MS, e.g. Romania. By the end of 2018, a further in-depth analysis of FDI within the EU will be conducted, particularly in strategic sectors or assets. As we may foresee, the EC might propose to design its own significant role in the investment policy-making process, while MS are requested to follow these designs. However, whether this EU-led FDI policy will make a consistent and equal standard which would also balance the rights of all the MS brings concern. 2.1.2 Member of CEEs As a leading country in the Central and Eastern European (CEE) region, the Czech Republic achieved the highest FDI per capita ratio. 14 CEE countries consist of former communist countries (the Czech Republic, Hungary, Poland, Romania, and the Slovak Republic), the independent countries in the former Yugoslavia (Albania, Bulgaria, and Croatia), and three Baltic countries (Estonia, Latvia, and Lithuania). The broader members of CEEs, namely Group 16, also expand to five other countries, including Bosnia and Herzegovina, Macedonia, Montenegro, Serbia, and Slovenia. The CEEs have been eager to strengthen their economies after the wars, the fall of Communism, or the misdirected economic policy of the past decades. Therefore, CEEs need a recovery from the post-central-planning drop in output, meet political and institutional conditions (such as EU membership), and follow the general global favourites to investment and growth in emerging market countries. 15 Accordingly, attracting FDI becomes one of the priority missions of the CEEs. The cooperation between China and the Group 16 CEE countries in the format of the G16+1 emerged in December 2011 and was later formalized in April 2012. 16 On 26 April 2012, China announced twelve Measures for promoting friendly cooperation with CEEs, which declared that “China will send trade and investment 14 U.S. Department of State Bureau of Economic and Business Affairs, ‘2015 Investment Climate Statement’ (May 2015) < https://www.state.gov/e/eb/rls/othr/ics/2015/241533.htm > [accessed 14 May 2018. 15 SCHADLER, Susan, MODY, Ashoka, ABIAD, Abdul and LEIGH, Daniel. Growth in the Central and Eastern European Countries of the European Union (International Monetary Fund Publication 2006) 1. 16 GÓRSKI, Jedrzej. ‘Central and Eastern Europe, Group 16+1 and One Belt One Road: The Case of 2016 Sino- Polish Comprehensive Strategic Partnership’ TDM , Vol 14, October 2017. 1.

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