International regulation of investment by state-owned enterprises: a comparative perspective

With more and more State-owned enterprises (SOEs) becoming international investors, they have become the subject of much policymaking concern in some major economies. There have been mixed public perceptions towards such investment. Some are warmly welcomed while others are met with strong opposition or deep suspicion. While most countries recognise that investment capital from SOEs is helpful for jobs and economic growth, they also ensure that foreign SOE investors are properly regulated to minimise the potential risks and satisfy community concerns. Accordingly, SOE investors in a foreign jurisdiction are often treated differently from private investors. Their investment activities are generally subject to a more stringent review process.