The AIG effect

ODS Chair Mirek Topolánek raised the question on the BBC whether ČSSD didn't intentionally sign a bad treaty with China. He said it does indeed protect investment - China's. Has Jiří Paroubek merely been charmed by China, or is the AIG effect also in place? AIG was quick to enter the Chinese market and then worked hard to put up barriers for other insurers to enter. Surely it's a coincidence that the Czech-Chinese treaty favors some of the early entrants into China, such as Škoda Auto and PPF, but could work against latecomers who aren't so well- connected. Deputy Premier Martin Jahn said that nothing better could be negotiated. HN reported today, though, that he's going to work for ... Škoda Auto. Škoda, PPF and other beneficiaries of the treaty have surely studied the AIG effect, so they know that AIG later fell out with China and is now being overtaken by the latecomers. [Czech Republic European Union Česká pojišťovna American International Group insurance investment-protection treaty]