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China's International Investment StrategyBilateral, Regional, and Global Law and Policy$
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Julien Chaisse

Print publication date: 2019

Print ISBN-13: 9780198827450

Published to Oxford Scholarship Online: April 2019

DOI: 10.1093/oso/9780198827450.001.0001

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A New Era in Cross-strait Relations? A Post-sovereign Enquiry in Taiwan’s Investment Treaty System

A New Era in Cross-strait Relations? A Post-sovereign Enquiry in Taiwan’s Investment Treaty System

Chapter:
(p.290) 15 A New Era in Cross-strait Relations? A Post-sovereign Enquiry in Taiwan’s Investment Treaty System
Source:
China's International Investment Strategy
Author(s):

Horia Ciurtin

Publisher:
Oxford University Press
DOI:10.1093/oso/9780198827450.003.0016

The author provides a post-sovereign enquiry in Taiwan’s investment treaty system. Going beyond the traditional legal divisions, Taiwan showed that it can bypass such limitations, being a main trend-setter in innovating the area of international economic law. Specifically, a close look at Taiwan’s nexus of investment treaty is eye-opening; Taiwan concluded twenty-nine BITs and six ample economic cooperation agreements with related investment provisions. The number and the importance of these agreements reveal that the concept of international recognition does not directly influence the behaviour of states which are willing to interact legally and economically. In this regard, non-diplomatic relations might be used as a step forward, as Taiwan is closer to conclude an agreement with another post-sovereign entity, the European Union. This global actor may open up the scene for a multi-tier dynamic where some of its component member states are in principle against any liaison with Taiwan, but will be bound to it because of their membership to the EU. To solve such legal contradiction, the established instruments of international law cannot be applied, and a new theoretical framework shall be developed. To this end, the starting point must be to discuss sovereignty thoroughly. The chapter assesses the polity’s effort for the development of diplomatic structures by means of investment agreements, in this way avoiding the problems related to recognition. This kind of agreement can be considered as a litmus test, showing Taiwan’s capacity to shift traditional categories of Westphalian international law and emerge as a self-standing actor.

Keywords:   Taiwan, economic cooperation agreements, investment provisions, international recognition, foreign direct investment, investor–state dispute settlement

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