This thesis seeks to explain why Norway has recently changed its policy on investment agreements with emerging economies. To do so, the preferences and interests surrounding negotiations between small open economy Norway and large emerging economy China for a bilateral trade and investment agreement are studied. Departing from Robert Putnam’s model of the two-level game, the thesis discusses the relevant actors and mechanisms in changing this policy at three analytical level (domestic, bilateral and systemic): i) the role of domestic corporate interests, ii) the shift in interest and policy among emerging economies, and iii) the failure of multilateralism in international trade and investment policy. The main methodological approach is an embedded case study of the China-Norway negotiations, drawing on empirical insights from other bilateral relationships, particularly between small open economies and large emerging economies (e.g. India-Efta, Brazil-Norway, China-New Zealand). The interests and strategies on investment and investment agreements of domestic Norwegian corporations, and their possible channels of influence on public policy, are examined through interviews with key informants in the Norwegian business sector and interest groups. The interests in and policy of bilateral investment agreements of China and other emerging economies are examined through reviews of former agreements, as well as statements of influential Chinese foreign policy think tanks. Norway’s position as a small power in a world of increasing bilateralism, and the way this influences the relationship with large emerging powers is examined against the overall trends in global trade and investment agreements. The thesis argues that the Norwegian policy change should be viewed in light of the changed interests of China and other emerging economies in investing abroad. While the Norwegian business lobby and telecoms industry is pushing this policy change in general, the domestic corporations are not found to be the primary initiators of this policy change towards China.