A Study On The National Treatment Of Foreign Investment In Bilateral Investment Treaties

Within the development of economic globalization, the economies of various countries has been merging into an interdependent system. The national treatment in pre-establishment of foreign investment has been a feature of investment liberalization and economic globalization. That will not only weaken the jurisdiction for foreign investment but also challenge the economic sovereignty of the host country.The national treatment in pre-establishment of foreign investment has become the common clause of bilateral investment treaty(BIT) which signed between the developed countries and the developing countries. The host country can decide that whether the foreign investment is permitted or not, which field the foreign investment is permitted to enter into and the conditions. Recently, investment liberalization which requires loosening the restrictions to foreign investment is becoming a trend. To encourage and protect their overseas investment and to attract foreign investment, the developing countries have to make concessions with the developed countries for the national treatment in pre-establishment of foreign investment of BIT.This article gives researches on the national treatment in pre-establishment of foreign investment, discusses the practice on national treatment in pre-establishment of foreign investment of BIT and put forward some improving measures.Under the conditions of economic sovereignty, the host country can decide to take the limited national treatment in pre-establishment of foreign investment "negative list") and participate in multilateral investment legislation.