(P7) Globalization of State-controlled Entities: Foreign Expansion, Domestic Privatization and Cross Border Governance
Julien Chaisse, Full Professor of Law, Faculty of Law, The Chinese University of Hong Kong
Jędrzej Górski, Research Fellow, Department of Asian and International Studies, City University of Hong Kong
Dini Sejko, Post-doctoral Fellow, Institute for Emerging Market Studies, Hong Kong University of Science and Technology
Mark Feldman, Professor of Law, School of Transnational Law, Peking University
Joel Slawotsky, Professor, Harry Radzyner Law School
A traditional panel will discuss governance issues triggered by the globalization of the activities of state-controlled enterprises (SCEs).
SCEs mainly headquartered in post-communist and developing countries, and operating under the state-capitalism paradigm, have increasingly gone global investing in a wide range of economic sectors, including energy, infrastructure, and telecommunications. In domestic operations, on the other hand. SCEs have been increasingly co-operating with foreign investors (including both foreign private enterprises and SCEs) as minority stakeholder, or partners in various forms of public-private-partnership (PPP) (investment in SCEs). SCEs include a wide panoply of entities that have various structures with different degrees of control by states at the central or regional level. The control can be exercised through ownership, right to appoint the management, and special-voting-rights. SCEs can be structured as entities without separate legal capacity (such as units of public administration carrying out economic activities). They can also be structured as legal entities of public law such as sovereign wealth funds (SWFs) or crown corporations. The control over business organisation by states might also be exercised through the leverage which state owned banks have over their borrowers. SCEs broadly raise issues in regulatory fields as diverse as company law, trade law, investment law, competition law, international taxation, and industrial relations. This leads to many normative whether legislative or contractual conflicts and being the basis of complex transnational investment and commercial disputes.
Against this rich background, the panellists will discuss the role of SCEs in the implementation of industrial policies of SCEs’ home states through international trade and investment activities. The panellists will also discuss the role of international investment agreements and investor state dispute settlement mechanisms, investments in PPPs and utilities, and the raise of national security regulatory responses related to the pervasiveness of sovereign investors in domestic economies of host states.