As the scope of the rules on subsidies and countervailing measures has expanded from trade to investment, the area of global subsidy regulation is now experiencing new developments as well as challenges. This Perspective calls attention to the need to improve the regulation of OFDI subsidies.

With the rapid growth in Foreign Direct Investment (FDI) inflows and outflows, China has been active in modernizing its International Investment Agreement (hereinafter “IIA”) stocks since the beginning of the 21st Century. This article begins by analyzing the necessity of China’s IIA...