Research On Dispute Settlement Mechanism In Bilateral Investment Treaties

Bilateral investment treaties (abbreviated as "BITs") is an adjustment of the relationsbetween the host country and investor country, also a main legal way to promote andprotect the investment in the other contracting state. BITs are mainly signed between thecapital-exporting countries and capital-importing countries, the aim is to promote andprotect investment activities between signatory countries. Compared to the traditionalInternational trade treaties, the most significant improvement of BITs is embedded in thedispute settlement mechanism, the establishment of dispute settlement mechanism can notonly resolved the dispute effectively after the dispute become a truth, but also can be usedas a form of deterrent to reduce the incident of the investment disputes. However, in themid-1980s, with the rise of US BIT, the traditional dispute settlement mechanisms alsohad an impact.Against this Background, this article tried to find out the changes of the BITs disputesettlement mechanisms and our country how to deal with the changes. The article isdivided into four parts：The first part of the paper introduces the development and different models of BITs.Mainly in the concept of BITs, the different models of BITs, and the function of BITs.Through the introduction of the chapter, hoping to have a macro understanding of BITs,which would be a foundation of the later discussion.In the second part of the paper mainly introduces the traditional BITs disputesettlement mechanisms. This part studies the traditional BITs dispute settlementmechanisms, and focuses on the disputes between the parties and the disputes between theinvestor and the host countries.In the third part of this article, mainly analysis the new development of the BITsdispute settlement mechanisms and make an evaluation to this development. Andmeanwhile, to the advantages and disadvantages of the new development of the BITsdispute settlement mechanisms, this part also gives an appropriate analysis and comment.The fourth section is the end part of this article, mainly tried to find out in thesituation that the BITs dispute settlement mechanisms have a new development how to sign BITs with other countries and what issues should be noted in the dispute settlementprovisions of China’s BITs, and also gives my Personal recommendations.