On The Problem Of "Treaty Purchase" In International Investment Arbitration

As international capital flows more and more frequently,modern international investment treaties protect investment according to a higher standard; especially include the dispute resolution clause aiming to settle the disputes between the foreign investors and the host countries. In fact, many modern investment treaties provide for the foreign investors to submit the investment disputes with the host countries to the international arbitration directly. A lot of foreign investors begin to think that if there is no BIT or FTA between my home country and the host country or some treaties related to the such matters cannot provide a proper solution, I could choose “a convenient home” through the methods of nationality planning or corporate restructuring or quoted directly the most-favored-nations treatment clause to choose a convenient treaty aiming at submitting the disputes with the host countries to the international arbitration. Such behavior is known as the "Treaty Shopping ". This article will discuss some important issues around the “Treaty Shopping”.First of all, the definition and the purpose of Treaty Shopping are introduced in the first chapter, then the main body and methods of Treaty Shopping are discussed in the second chapter. Following, some typical cases about Treaty Shopping are listed and analysed in the third chapter. Finally and emphatically, the revelation and impact of the research of Treaty Shopping on the China’s specific conditions are revealed in the forth chapter.As for China, a new powerful country at international investment aspect, we shall, on one side, limit the usage of the Treaty Shopping by foreign investors who want to make the investment disputes out of our control, and, on the other side, utilize the Treaty Shopping properly to protect the Chinese foreign investors in other countries.