Chinadaily 2004 (“China, India will sustain global economy”, October 24, http://www.chinadaily.com.cn/english/doc/2004-10/24/content_385148.htm)
Rising oil prices are slowing growth across the world but key emerging economies such as China and India will continue to support the near-term outlook for commodities, the world's largest mining company said Friday. BHP Billiton chairman Don Argus told the company's annual general meeting in Sydney that strong demand growth in the United States and China had flow-on effects on the rest of the world. "Europe, Japan and Asia have all been beneficiaries of the improvement in global trade, while commodity-producing nations have benefited from stronger prices," Argus said. He said indicators had more recently pointed to an easing in growth across the world as monetary and fiscal policies were tightened. As well, there were indications of a slowing in economic activity in China from the frenetic pace of earlier in the year, while high oil prices would affect spending throughout the world. "Nevertheless, providing countries can successfully manage these headwinds, a growing global economy, in particular the ongoing development of China, India and other key emerging economies, continues to support the near term outlook for commodities," he said. He predicted that the dual-listed Anglo-Australian group would continue to build on the success which saw it boost net profit 83 percent to 3.5 billion US dollars in the year to June and achieve a 21.4 percent return on capital. BHP Billiton chief executive Chip Goodyear told the meeting that in the June 2005 fiscal year the group expected capital expenditure to be around 4.0 billion US dollars, a record. It would include 2.4 billion US dollars for project development and 450 million US dollars for exploration. "This is more than we've spent in any annual period in our history," Goodyear said. He said there were 24 projects in the project portfolio now being developed or having their feasibility studied, representing approximately 8.6 billion US dollars in growth expenditure over the next three and a half years. The projects include oil and gas developments as well as copper, nickel, alumina and iron ore expansions. Goodyear said the expansions and new developments are being made to match growing demand but the investment criteria mean they must deliver acceptable returns even during cyclical downturns. He said China's outlook was particularly heartening. "We believe the demand for commodities in China is sustainable over the long term ... with bumps and bruises along the way," he added. BHP Billiton was also watching potential development of other economies with large population bases, such as India and Brazil, he said.
(“Comparing The Legal Foundations Of Foreign Direct Investment In India And China” 2006 COLUM. BUS. L. REV. 167)
This discrepancy between the approval systems of each country raises significant issues, especially in light of the Planning Commission's finding that the tangle of bureaucratic controls and procedures at the post-approval level, when the regional authorities become involved,is the "precise reason" for low levels of realization in approved FDI inflows in India. 180 Although China's inclusion of regional authorities in the national-level procedures would seem to hinder the efficiency of its approval process, by formalizing the regular infighting that inevitably develops between the central and state governments, it essentially allows MOFTEC and COFTEC to grant dual approval, thereby enabling the foreign investor to begin immediately operations after approval is granted (without having to submit independently to local authorities). This suggests that China's inclusion of state and local approval authorities within the national-level approval process framework may result in a more streamlined process overall for FDI approvals, one that generates regional approval under a nationally promulgated framework. Instead of being granted a similar, united approach in India, after FIPB approval is granted, the foreign investor is left to fend for himself in the trenches with state and local authorities, who are (unlike their counterpart COFTEC in China) not supervised by any national authority during that process. The Chinese system may help investors address more effectively the post-approval regional bureaucracy once and for all, concurrently with national approval.D. Respect for States' Rights and Its Burden on Rule of Law When judged against the rule of law standard of certainty, or predictability, China offers more such [*213] protection to foreign investors than India. Upon entering China, investors can be certain of the nature, if not the speed, of the approval process. Comparatively, foreign investors in India encounter far less certainty regarding investment approval procedures because of the lack of coordination between the national and state/local bureaucracies and the sheer volume of approvals required at the local level. Although India's approval processes are cumbersome enough for foreign investors to navigate such that they delay and deter the realization of investment, they adhere to one important democratic element sidestepped by China: federalism or the respect for states' rights. By passing off the investment (and investor) to state and local authorities once approved, the Indian FDI regime implicitly respects the division between national and state institutions, and therefore, refrains from encroaching upon state political and regulatory territory. In contrast, China's FIE legislation itself seems to have been implemented with the goal of usurping states' (and other local authorities') roles in the approval process. Evidently, although China's approach works better for foreign investment, this more streamlined FDI approval process comes at the expense of states' rights. Therefore, India seemingly holds steadfast to the foundational democratic element of federalism but, in doing so, is hampered in offering rule of law protections to its foreign investors.