Foreign Investment Fair And Equitable Treatment Standard Research

Fair and equitable treatment is a standard of treatment which widely exists in international investment treaties. This standard has been used frequently in international arbitration practice since the mid-90s of last century, which cause a widespread concern of the international community. As the expression of fair and equitable treatment provisions in most international investment treaties is simple, and there is lack of uniform application rules, proper interpretation mechanism, capital-importing countries, capital-exporting country and the investor have made different interpretations. The arbitral tribunals tend to protect the investors when decides cases involving the fair and equitable treatment standard, which contributes to investors'enthusiasm to resort to investor-state arbitration and host country's economic sovereignty is challenged in a certain degree. To achieve the balance between protections of the investors'interests and maintain host countries'economic interests, it's necessary to pay more attention to investors'obligations when prefer to obligations of the host country. In other words, clarify investors'obligations to limit the expansion of this treatment standard. Almost all bilateral investment treaties China has signed provide investors fair and equitable treatment. Facing the rapid expansion and frequently application of this treatment standard, it's urgent to make a correct and deep understanding of its meaning and apply it flexibly to maintain our economic sovereignty and achieve economic and social development goals as a major capital-importing country.This article reviews the development process of the fair and equitable treatment standard briefly and elaborates it's interpretation methods. And then, summarizes the content of fair and equitable treatment standard from obligations of the host country and the investors respectively by combing the existing international arbitration cases. Finally, this article analyzes the problems of fair and equitable treatment provisions in China's bilateral investment treaties, propose some advices for the international investment arbitration which China may face in the future and hope to limit negative effects of this standard and play it's positive role in a way that most consistent with China's national conditions.