Study On Mining Investment System Of China - ASEAN Free Trade Area

Compared with global and bilateral mineral investment arrangement, international regional mineral investment institution has notable advantage and irreplaceability as a international investment arrangement in minning field. The complementarity with China and ASEAN countries in mineral resources and mineral exploring fund, demonstrate the necessity of establishment and improvement of CAFTA Mineral Investment Institution (hereinafter referred to as CMⅡ), meanwhile, already established China-ASEAN Free Trade Area (hereinafter referred to as CAFTA) provide platform and opportunity for establishment and improvement of CMⅡ.Accordingly, this thesis selects CMⅡ as the research object, improvement reason and method of CMⅡ as research angle of view. Firstly, summarize the defect and improvement necessity of CMⅡ through analyses the situation of CAFTA mining investment activity and content of CMⅡ, analyses international minning investment activity theoretically and it demand for related institution. Secondly, analyses the value of CMⅡ through combination of value analysis and economic analysis method, analyses the economical motivation behind the value, design and apply a evaluation system of CMⅡ, analyses the specific imperfection and faultiness of CMⅡ. Lastly, put forward the improvement suggestion of conclusion "Deceleration of China-ASEAN Minning Investment cooperation"(draft attached), and improvement relevant domestic institution.China has small amount of per capita resources, and a strong import dependency. Since foreign trade can not meet the need of mineral resources because China is lack of pricing right. Minning investment can ensure mineral resource sustained and stable supply since investment is a complementary cooperation method to trade. ASEAN countries are rich of mineral resources, many kinds of resources are complementary with China’s. CAFTA apply a great opportunity for Chinese mineral enterprise to invest in ASEAN counties, as well as ASEAN counties explore domestic mineral resources to satisfy mineral resources needs. Therefore, CMⅡ is a important way of ensure domestic mineral resource supply, and related to the future of CAFTA deepen cooperation and peaceful development. Nevertheless, the related international agreement is lack of specific regulation, some of the ASEAN counties have strong resource nationalism and protectionism, domestic institution lack of transparency and predictability, China’s supporting and supervision regulation for minning outward investment is not complete, which impede the growth of minning investment. If we want to ensure the domestic mineral resource supply and create Win-Win situation through investment in ASEAN countries, The perfection of CMⅡ is necessary and urgent.It is necessary to evaluate and analyses the content of CMⅡ for discussing the improvement method of CMⅡ. The author applies the value analysis method to estimate the value of CMⅡ, discuss the necessity of discretion of CMⅡ based on the origin of creation and development of the institution. According to the value of law theory, the value of CMⅡ can be defined as Order and Effectiveness. Order value reflect the regulate function of CMⅡ on minning investment activity, it is the demand of orderly investment activity, Effectiveness value reflect the promote function of CMⅡ, to accelerate activity. The two value of CMⅡ can be the benchmark of analysis and evaluation. In order to put the two value into analysis of CMⅡ directly, this thesis combine economic analysis method here, decompose the Order and Effectiveness value:Order value contains sustainable development and balance coordinate standards, Mineral resources is non-renewable, which decided exploration and usage need follow the sustainable development demand. Besides, CMⅡ has the characteristic of public goods, the balance of public goods supplying and demand can be used to analysis the balance between regional public goods and domestic public goods. Effectiveness value include mineral resources safety and investment facilitation standards. In consideration of China’s demand on mineral resource constant and stable supply, whether the institution can achieve the mineral resource safety, facilitate the mineral investment activity, are a important analysis content.Because of relevance between the above standards, the process of analysis CMⅡ is inspect above standards comprehensively. The author design a evaluation system include above standards, to demonstrate the improvement way of CMⅡ:establish evaluation system---apply the system and make conclusion---put forward suggestion.First step, the content of evaluation system is:firstly, mineral resources security. Analyses whether CMⅡ take effect in the mineral resources security by analysis China and ASEAN countries’need and supply of mineral resources; secondly, balance coordinate. How to balance the encouragement of outward investment and cautiousness of foreign investment in mineral resources industry; thirdly, realization of investment facilitation. The transparency, predictability and facilitation of outward and inward investment; fourthly, possibility of sustainable development. Mineral resources is non-renewable, which decided that the sustainable usage of mineral resources is very important content of countries’need on mineral resources, the sustainable cooperation between capital export country and import country, concerns whether the minning investment can satisfied the need on mineral resources sustainablely.Second step, apply the system and make conclusion. Put the current content of CMⅡ into every standard of the evaluation system, CMⅡ exist the following problem:firstly, on the mineral resource safety aspect, although the amount of minning investment from China to ASEAN countries is increased after relevant international agreement come into force, the scale of investment is not ideal, there is still promote space for ASEAN countries accept Chinese minning capital to explore domestic mineral resources; secondly, on the balance coordinate aspect, although there is no contradiction between mineral source investment relevant international agreement and domestic minning industry institution, mineral resource sovereignty transfer and mineral cooperation still can make further step; thirdly, on the realization of investment facilitation aspect, facilitation extent should step on a new level; fourthly, on the possibility of sustainable development aspect, the international agreement did not reflect the spirit of sustainable development, lack of relevant regulation, the export capital country did not have export minnig capital regulatory, and the sustainable development and mining investment cooperation lack of the system basis.Third step, put forward the improvement suggestion. The author believe that we should hold the principle of balance the regional public goods and domestic public goods, coordinate maintain mineral resource sovereignty and strength ASEAN minning investment, and China cooperate with ASEAN countries under Non hegemonism. Considerate the related international agreement is lack of specific regulation and domestic minning institution is tend to strict under industry policy, suggested improve CMII from both international institution and domestic institution as follow:Firstly, on the international institution aspect, approach The Deceleration of China-ASEAN Mineral Resource Cooperation. The Deceleration should be focus on CAFTA minning investment facilitation, sustainable development and sustainable minning investment cooperation, express the decision and strong will of minning investment within countries of this area, set the aim for minning investment and the keynote of the following negotiation. As a specific international agreement of minning investment, it should lead further negotiation process in the further.Secondly, on the domestic institution aspect, China should improve domestic minning foreign investment institutions in the position of a responsible country. On one hand, China should improve export minning capital encouragement and supervision regulation in considering of economical and environmental interest of investment host countries as a leading position. on the other hand, Chinese government should strength information service and use economic lever to amend tax and finance policy for outward investment enterprises, adjust the amount and field of foreign mineral resource risk prospecting fund.