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The paper examines the significance of legal protection of Chinese Foreign Investments in Lusophone markets with a specific reference to Bilateral Investment Treaties (BITs) with Cape Verde and Portugal and assesses how Macau SAR as a Lusophone society could play a positive role in facilitation of foreign investments. With the keen Chinese interest on Lusophone markets and its official designation of Macau as a facilitator, most studies have been focused on broader economic relations with them as a group and the present paper investigates the scope of legal protection in certain specific bilateral investment relations. The paper comparatively examines the scope of legal protection of Chinese investments in two sets of Lusophone markets namely those which have no BITs with China and those which have succesfully concluded the BITs (particularly Cape Verde and Portugal). Based on the analysis, key limitations and some potential barriers to bilateral investment flows are highlighted. The final part of the paper scrutinizes how Macau SAR could contribute to enhance investment flows between China and Lusophone markets, especially in the light of its legal system with a Portuguese influence. The paper concludes with a discussion on the need and viability of a regional investment protection and facilitation agreement under the auspices of the Forum Macau to address the identified challenges and promote the utitlity of related legal and other allied services Macau society could offer.1

The Scope and Limitations of Legal Protection of Chinese Foreign Investments in Lusophone Markets and the Role of Macau Society