The Limitation And Balance Of The Right Of Management And The Expectation Of Investors In Indirectly Collecting Host Country

With the development of international investment, the host country not only comply with its own commitment, but also use its police power to regulate economics in accordance with the situation of domestic political, economics and environment. In the area of international investment, the most two important factors to judge indirect expropriationare two factors: regulatory right of the host country and investor’s legitimate expectation, which reflect the confliction of interest of host country and foreign investor.Whether regulatory rights or legitimate expectations of the investor, there are some limitations. In addition to imposing restrictions on host state power and invetors’ expectation, they needs some ways to balance them, such as principle of proportionality, the principle of due process and the principle of fair compensation.In addition,when host-state infringe the interest of foreign investors to protect public interest, it need not compensate for the loss of investors’ investment. If not, host state can not excise police power freely, which is against the dependence of host state.The freedom must be restrict on some extent,such as the principles of due process and proper compensation principle.In the context of the globalization of capital, regulatory right of the host state and the investors’ legitimate expectations are the required solving problems in most countries. As the host state, it should take some measures to protect themselvesfrom compensation for being suit of indirect expropriation; as an investment state, investment decision must be made on reasonable investor’s expectation. How to maximize their own interests, this article force on the balance of the host state and investor’s legitimate expectation by first analyzing limitation of them respectively and give instruction on behavior of host state and foreign investor.Our country, as a host-invest state, must stick to balance measure.