The Studies On The Issue Of International Investment Arbitration Weakened National Sovereignty

Economic globalization now is an irresistible trend. The economic links between counties becomes increasingly tighter. No country can develop well without investment. The rapid development of international investment has give rise to various investment disputes. Because of the special nature, the settlement of investment disputes between states and nationals of other states has been widely attention by international community. The ICSID Centre which had been founded in 1965 is a special international institutions for this type of investment disputes. After over 40 year's operation, ICSID arbitration has become one of the most important methods of international investment dispute settlement. Especially since 1990s, a series of international investment arbitration practice has gradually brake the moderate international investment arbitration system of ICSID treaty, showing a trend of diversification. More and more countries has accepted the international investment arbitration as a way of settlement of investment disputes in BITS, A number of bilateral investment treaties and the investment section of regional trade agreements have stipulated that the investors can directly give the dispute which between the investor and host countries to international arbitration. The growing trend of international investment arbitration protect to investors,the heaving obligations and risks to host country. And this posed a challenge and impact to national sovereignty. This article has used the theoretical research, empirical research and historical research methods and so on. It intended to comprehensive analysis the new developments of international investment arbitration. This article is divided into four parts. The first part started from procedural and substantive law aspects. There has elaborated the trend of jurisdiction expansion. In the application of arbitration law, as provisions of the investment treaty substantive law are ambiguous. It is provided the conditions for investors to casually lodge arbitration and interpret treaty obligations. So that the sovereign state cannot forecast whether they behaviors are required by the treaty. And leading to the risk of being sued and losing. In this section, a large number of cases had been used for comparative analysis. Thus providing sufficient arguments to support the argument; The second part, there has elaborated the real reason of the weakening of national sovereignty; At the end, proposed by constructing a rational international investment arbitration mechanisms, and raised the constitutional concept of the international economy, to alleviate the risks of the sovereign state from investment arbitration mechanism.