An Analysis Of The Application Of The Forks In The International Investment Treaty

In relation to the settlement of international investment disputes, the developing countries have made a compromise to accept the “fork-in-the-road” clause in international investment treaties. While the developing countries have compromised,the developed countries still want to seek the double-benefit. Nevertheless, along with a trend that the recent practice of international arbitration inclines to suppress host countries and favor investors, the international tribunals have brought the“fork-in-the-road” clause to death through interpreting them in an extremely narrow way. China, a big country in attracting foreign capital and foreign investment, should treat “fork-in-the-road” clause cautiously in order to avoid being a passive position in the settlement of international investment disputes.This paper provides the introduction to the concept and the cause of the fork-in-the-road clause, presents the typical description of the clause in investment treaties, and introduces several illustrative cases showing the international tribunals abusing the doctrine of Res Judicata. China should revise the current typical provisions of “fork-in-the-road” for the subsequent bilateral investment treaties, in order to upholding the national interest.