Study On The Conciliation Mechanism Of The International Investment Disputes

Dispute is always arising out of human social life. With the growing prosperity of international investment, disputes are inevitably happening. So how can we resolve these disputes? Generally speaking, it depends on the contract or agreement made previously or afterwards. Conciliation, as a typical representative for Alternative Dispute Resolution (ADR), has advantages like flexibility, efficient, and economy. So it is gradually accepted and welcomed by the parties of the international investment disputes and widely used in the field. Meanwhile, the Conciliation mechanism of the international investment dispute constantly perfects itself in the development. As an independent solution and approach, it has become an important organic component of the Conciliation mechanism in international investment dispute. Based on the existing legislation and practice and by using comparative, inductive, and deductive approach, this dissertation attempts to have a systematic research into the Conciliation mechanism of the international investment dispute and to summarize the development trends it. Besides, this dissertation also attempts to answer how to improve Chinese Conciliation mechanism of international investment dispute.International investment disputes can be divided into following types based on participants:dispute between investors from different countries, dispute between foreign investor and host country, and dispute between investment owner country and host country. Solutions for those disputes include non-legal methods like negotiation, Conciliation and reconcilement, normal legal solution like arbitration, and legal solutions. Compared with other solutions, conciliation has its special advantages like flexibility, efficient, and economy, so it is gradually accepted and welcomed by the parties of the international investment disputes. It's becoming more and more important and has become an independent solution in international investment disputes.With the global popularity of ADR, the conciliation mechanism has won more and more recognition. The international business conciliation rules can also be applied to the conciliation practice in international investment disputes. However, currently there's no worldwide special law for international investment disputes. Investment dispute conciliation is mainly following business conciliation law and rules, which is not enough for resolving complicated and various investment disputes.The essential characteristic for conciliation are its party autonomy and flexibility. So free will and harmony between legality and rationality should be basic principles to be followed in international investment disputes Conciliation. Conciliation is not like lawsuit or arbitration which have strict process, but necessary rules are needed to ensure smooth carrying out of conciliation. To avoid hostile using of conciliation against other party, it's necessary to define right and obligation of parties, the neutrality of conciliator and the secrecy keeping during conciliation. Since conciliation process starts normally with agreement between parties and ends with successful compromise or conciliation failure, process guidelines are needed on when to start or to end conciliation and time restriction of conciliation process. Only by doing this, conciliation can be carried out smoothly in process.Presently, international investment dispute conciliation shows trends of specialization and institutionalization. These trends comply with the needs of dispute parties in convenient and efficient conciliation mechanism. The development of Chinese international investment dispute conciliation mechanism is far behind international development. Therefore, to solve dispute efficiently and to improve investment environment, China should correct the deficiency in international investment dispute conciliation mechanism. We can consider legislation and the adjustment of conciliation institution.