THE ROLE OF STATE-OWNED ENTERPRISES IN THE INTERNATIONAL INVESTMENT LAW REGIME

Abstract

In response to the COVID-19 crisis, governments have taken a wide range of measures to support the business sector. Despite the rise of international investment treaties and the adoption of liberalizing measures by national governments, many states are taking a more cautious and restrictive approach to regulate international investments. In some cases, rescue packages include the acquisition of equity stakes in companies in financial distress, potentially increasing the number and presence of State-owned enterprises in the economy. Especially, in post-socialist countries, state-owned enterprises still play an important role in the economy; however, their activities are concentrated in domestic markets. The discussion of whether the host country’s regulatory measures for foreign public investment are transparent in terms of the use of exceptions to the contract stems from the fact that the restrictive measures relating to the organization or post-establishment of foreign state investments. Such restrictive measures typically apply to the entry of foreign public investment into the market, especially in critical infrastructure and “strategic” industries. The aim of this article is to present the general nature of state-owned enterprises and analyze the regulatory measures taken by some countries