Research On Arbitration Mechanism In Investor-State Dispute Resolution

With the world economy deepened and international investment liberalization improved rapidly, the treaty-based investor-state arbitration mechanism faces new issues, while the defects which stem from the attributes of International commercial arbitration have not been settled. While state policies attracting foreign investment and encouraging investment abroad become better, international investment environment improves. The trend that the number of treaty-based investor-state dispute settlement cases filed under international investment agreements grow quickly reflects many important characteristics of the mechanism. Based on the comparative analysis of treaty contents between china and other states, it is quite necessary to examine the issues the mechanism faces and improve the provisions of the treaties in accordance with the investor-state arbitration practice.In addition to Introduction and Conclusion, this paper is divided into four parts, as the following:Part one is the basic theory of the treaty-based investor-state dispute settlement mechanism. This part describes the history and the resent development of the mechanism and the main foundation concepts related to the mechanism.Part two elaborates the issues on the jurisdiction of investor-state dispute settlement. This part mainly discusses the jurisdiction foundation and the specialty of the ICSID jurisdiction which is the most important forum for international arbitration.Part three discusses the application of law in investor-state arbitration, including the substantive issues and the procedural issues.Part four analyzes the concrete issues within the development of investor-state arbitration practice based on the former three parts and proposes some details in the conclusion of treaties between china and other state. Firstly, this part discourses the inconsistency of decisions in investor-state arbitration, then presents efforts for perfecting the provisions in the treaties between china and other states. Secondly, this part recommends new measures for the development of the meaning of the Fair and Equitable Treatment Standard in the cases filed under NAFTA. Thirdly, this part discusses cases filed on the ground of the Argentine Financial Crisis, and then advances suggestions on the conclusion of treaties between china and other states. At last, this part discusses withdraw of several States from the ICSID and the termination of several bilateral investment treaties. To realize the purpose of conclusions of international investment treaties, china should consider the provisions and the contents of the treaties cautiously.Analyzing practices of the international investment arbitration, this paper is based on the awards of several cases filed under the investment treaties, combining the reality of china and empirically advances some important advice to keep balance between the protection of private investor and host states.