The Canada-China Agreement on Mutual Investment Promotion and Protection, or Canada China FIPA, is a bilateral investment agreement between Canada and China that came into effect on October 1, 2014. [1] [2] The Foreign Investment Protection Agreement (FIPA) or the Foreign Investment Protection and Promotion Agreement (FIPPA) are Canadian names for ILO. FIPA`s three essential obligations in Canada include “non-discriminatory treatment,” “fair and equitable treatment”[6] and compensation for expropriation. [3] According to a 2012 Article in the Foreign Investment Law Journal, Canada`s 2012 Fipon model combines “fair and equitable treatment” with international law “The Minimum Standard of Treatment.” This ensures “fair and equitable treatment, as well as total protection and security, in accordance with the principles of customary international law.” [7] 181 Prime Minister of Canada, statement by the Canadian Prime Minister on foreign investment (Ottawa: 7. December 2012), online: : “Given the growing trends and decisions taken today, the Canadian government has found that foreign state control over oil sands development has reached the point where such foreign control would not have a clear effect on Canada. That is why, in the future, the Minister will only provide a net benefit to the acquisition of control of a Canadian oil sands business by a foreign state-owned company in exceptional cases. Until 2017, Canada`s China FIPA remained unknown to most Canadians, even investors, according to the China Business Council of Canada, the International Business Institute. The Rotman Institute said the agreement provided considerable security for the co-candidate party. [17]6 Third, and on the second point, it is Beijing`s attempt not only to present itself as a respectable – if not one of the leaders – of the international community, but also to show that it is firmly in control of its own economy. The weakness of the rule of law in China has been repeatedly cited as a major challenge for foreign investors and as a sign of China`s perceived status as a second-class member of the international community. The new Foreign Investment Act aims to allay these fears by confirming China as a destination for foreign investment, where the rule of law is respected and foreign investors are treated fairly. 115 China FIPPA, supra nr. Article 8, paragraph 1, point b) of Regulation (EC) No.

2008/2006 does not apply to “treatments granted under a bilateral or multilateral international agreement that was in force before 1 January 1994”). MFN`s treatment also does not apply to trade agreements (China FIPPA, Ibid, Article 8, paragraph 1, (a) (a)), but this does not affect this analysis, since the explicit application of MFN`s treatment to FIPPa after 1993 is sufficient to undermine Canada`s restrictive language after 2001 (provided the language is considered a more favourable foreign investor than the 2001 language prior to 2001). 5 That is, a larger proportion of foreign direct investment (FDI) in Canada than in the United States, Western Europe and Australia would be covered by investor-state arbitration (ISA). For further explanation, please refer to note 177 of this article. China`s new foreign investment law certainly shows China`s willingness to address issues affecting foreign investors – and more broadly the international community. But will the intention translate into real and positive change? Both acts of legislation deal with protection and privacy, but similar names can lead to confusion rather than clarity. While China offers a difficult opportunity to give up China, companies risk losing their proprietary technology due to lax enforcement of IP legislation (and the rule of law in general).