Definition Of Investor Scope In ICSID Jurisdiction Expansion

1965 Convention on the Settlement of Ivestment Dispute Between States and Nationals of Other States(abbreviation ICSID convention), as one of the The multilateral investment treaties,which has significant effect on international investment. ICSID convention a multilateral investment treaty for arbitrating International investment disputes.It was hosted and protocoled by the World Bank, signed by various countries in Washington,1965. And then International Center for Settlement af Investment Disputes(ICSID) established under this convention.China has became the official contracting party since 6,2,1993.However at present, how to accept ICSID jurisdiction still do not stipulate as national legislation or multilateral treaty, just as Bilateral Investment Treaties(BIT).ICSID convention stipulates that investors include natural person as well as juridical person. Defining natural person to be qualified investor’s standard is nationality, ICSID article 25 of convention stipulates two elements on natural person investors, one is nationality and the other one is date. Any natural person who had the nationality of a contracting state other than the state party to the dispute on the date on which the parties consented to submit such dispute to conciliation or arbitration as well as on the date on which the request was registered.According to article 25 of ICSID convention, If juridical person want to be the qualified investor, there are two elements about it,one is nationality of juridical person, another is date. And ICSID administer two types juridical person investors:un-host state juridical person and host state juridical person who controlled by foreigner. It seems from practice of ICSID, defining juridical person’s nationality used establishment standard and capital control standard.However,because different arbitral tribunal will use different standard as well as ICSID convention did not stipulate the extent of foreign control.So in the practice,ICSID arbitral tribunal could exercise the discretion.And there is a shell company in practice, but it do not stipulatein BIT,defining shell company’s nationality is depend on ICSID arbitral tribunal.Attitude of China for accepting Jurisdiction of ICSID, changing f rom the strict limitations to be extensive accept.However we should co mprehensive consider to accepting Jurisdiction of ICSID base on Chin ese dual identity which is host country as well as investor. Countries conclude and sign the BIT with China, which include developed coun try and developing country.Thus we could ues different method to pro tect national sovereignty and benefit of foreign investor.In the trend o f expansion of Jurisdiction of ICSID,we could do some measures to p rotect Chinese investors’s benefits.Firstly, specifying the scope of Chi nese investors,especially in BIT.Secondly,pay attention to Hong Kong’ s investors’nationality.The BIT signed by China and other countries, which is not actively apply to Hong Kong or the same areas.And thro ugh explicitly stipulating the articles to limit Arbitral Tribunal’s powe r of interpretation,such as the article of Most-Favored-Nation Treatment. Finally, Limiting the power of interpretation that ICSID arbitral tribun al explain to BIT or choosing others International investment arbitrati on to replacing ICSID.