[HillaryBriss]

Ok. So, it's about equal IP protection and not investment. Thank you for the clarification.

Based on what you're saying, it sounds like the EU and other countries could impose a wide range of conditions or restrictions onto Chinese investments or purchases without running afoul of WTO rules. Interesting stuff.

Looks like I stand both corrected and downvoted. Gotta luv HN!

[fspeech]

The theory has always been that countries would compete with each other for FDI, but the reality is a little more complicated. When Amazon put the location of its new headquarter out for bid many cities are willing to throw any concession at Amazon. However that does not mean cities like SF or NYC would do the same. Not every location has the same attractiveness for business. Similarly not all countries are the same in their attractiveness to business. You can't expect countries to not take advantage of the differentials and offer identical terms unless doing so is in their own interests.

On the other hand, as a thought experiment, what would have happened if China had been more open or fair to foreign investments? Then even more businesses would have invested in China and thus subject themselves to the influence of the Chinese government. For an example (not to imply any moral equivalence) see the tremendous power the US government wields over transactions conducted entirely between foreign entities.