For U.S. companies looking to protect their investments in Asia from political and regulatory risk, one large door may have closed, but another could be opening. While U.S. domestic politics seem to have put an end to the long-heralded Trans-Pacific Partnership (TPP) and its investment protection chapter, an even farther-reaching treaty promoted by China could take its place. And even though it appears for now that the United States will not be a part of that treaty either, resourceful American businesses may be able to benefit from it nonetheless.
As President Donald Trump has made rather clear, the United States will not be part of the TPP. That, in turn, may doom the TPP itself. Japanese Prime Minister Shinzo Abe has said that the treaty would be “meaningless” without the United States. Gone with the TPP will be its Chapter 9, which guaranteed various legal protections for companies from TPP member states (such as the United States) who invested in other member states (such as Japan, Malaysia and Vietnam), as well as the ability to enforce those rights through international arbitration. Continue Reading