National Treatment Of Foreign Capital Inflow Study

The national treatment is an important legal system formed in the long history of the practices of the global economic trade. It was originally applied to the field of goods pass in and out of the territory of a country in the fields of international trade. Until after the Second World War, with the rapid development of international economy and investigation liberalization, national treatment was gradually brought into the fields of international investment and become an important principle of international investment law.In the traditional investment legal system, the host country has the right to determine the areas and conditions of the foreign investment. Although based on the some investment treaty, it should give the foreign country the national treatment, that is to say the national treatment is only used in post-establishment of investment. The newly published treaties advocate the notion of free access and ask for the national treatment in foreign investment admission. And the national treatment in foreign investment admission has become the common clause in most of the treaties that developed countries conclude. This bind of treaty practice weaken the foreign investment jurisdiction of host countries seriously and is only on behalf of the interest to some developed investment exporting countries and should be paid attention to developing countries.The legal basis of national treatment and the practice of national treatment in foreign investment admission were researched in this paper; the main problems in the pre-establishment national treatment was discussed based on the national economic sovereignty; at last, the attitudes and measurements in China were proposed for foreign investment admission of national treatment. For most developing countries, on one hand, the countries should decrease the restrictions to foreign investment and implement national treatment after foreign investment entered into; on the other hand, they should adopt investment liberalization step by step, and implement national treatment in foreign investment admission on the basis of the conditions and policies of the own countries.