Research On The Definition Of Indirect Expropriation In International Investment

Expropriation has always been one of the most controversial problems in international investment theorists and practitioners. The initial debate focused on the legality of the expropriation, but the problem gradually shift the focus of dispute over compensation since the Helsinki Principle was proposed. Since 1980s, as frequently mentioned in arbitration, theorists have begun to focus on indirect expropriation. The key issue of indirect expropriation is its definition, which has undoubtedly become the new focus of controversy in investment law.To define indirect expropriation, we should abide by the principle of balance of interests, to strike a balance between the public interest in their property and the interests of foreign investors', because the problem is essentially a struggle between the two. Currently, the main standards to define indirect expropriation are the effect standard and intent standard, but focus on different criteria made the selection or definition is different, so the choice between the two standards is essential, which induced the formation of a different theory-sole effect principle and the principle of adopting both effect and intent. Taking into account the economic development task of developing countries with more difficulties, and the social problems they may face, especially more serious global environmental problems, the principle of proportionality should be brought in to balance the effect and intent of the measure when considering the definition of indirect expropriation.China's reform and opening up, in the investment area both import and export are outstanding achievements. However, China signed bilateral investment agreements, but little mention of indirect expropriation, which makes our country is facing allegations of indirect expropriation of foreign investors and host countries indirectly imposed the double risk, so we should improve from two aspects contents perfect agreement and the settlement of investment disputes to prevent and response.