The Two Subjects Of The Development Of Bilateral Investment Treaties

Bilateral Investment Treaties (BITs) are refers to the general designation of bilateral treaties, which are signed between the capital-exporting countries and capital-importing countries, in order to maintain a healthy investment environment, promote the protection of foreign investment and norms, encourage, protect and promote the private direct investment activities between the two countries. Along with the continuous strengthening of the economic globalization and the increasingly active of international investment activities, the investment disputes between the investor and the host are increasing. Resolving these disputes through a legal mean is impotent for the protection of investor’s interest and the host country’s legal order. Most of the BITs are expressly agreed the rights and obligations and dispute resolution between the parties. It provides an important guarantee for the legitimate rights of investors and the legal order of host countries. So the numbers of BITs are increasing. Up to now, there are about2,600BITs are signed by the countries in the word. Since the1990s, in the weak of the development of international economy, the protection to the investors provided by the traditional international investment rules can not meet the requirements of capital-exporting countries. Driven by the capital-exporting countries, there raise a sharp increase in the number of international investment treaties. In the same time, there showing a high standard and liberalization trend in the BITs. Contrarily, the host countries especially the development countries have made a huge compromise and concessions in the BITs, in order to attract more foreign investment to develop its own economic. During this period, a new international political and economic order are gradually formed, cultural diversity are recognized. These new international situations are challenged the development and role of BITs.The texts are intended to have a reach to the two questions BITs have faced:the relationship of the development of BITs and customary international law, the plight of the development of BITs. The text adopted several methods to analyze the two questions, including documentary research method, case by case method, functional analysis method and so on. From the analysis and research we concluded that:a) customary international law laid the foundation for the emergence and development of BITs; BITs norms the customary international law. b) In consideration of the cultural heterogeneity, actors’ heterogeneity and legal norm heterogeneity, the development of BITs are facing numerous difficulties.