Review On Denial Of Benefits Clause In International Investment Treaties

Benefited from the reform and opening policy，great changes have taken place inChina’s economy. China has not only become the powerhouses of Asia but also thepower source of the world economic development, the absorption capacity of foreigncapital and foreign investment has further enhanced. International direct investment,one of the factor, a strong push to China’s economic development, has being concernof the world, but also become a form of international relations advocated by theinternational economic community. Although the research on international investmenthas increased, few study on the denial of benefits clause in Chinese academia.This paper mainly focus on what is “denial of benefits clause”in internationalinvestment treaties? The lack of the denial of benefits clause that shows in theinternational arbitration of investment disputes. And have a full discussion about theimportance of the denial of benefits clause.Whether the denial of benefits clause is thebest choice to China’s defense treaty shopping. This paper is divided into fourchapters:There is an overview of the denial of benefits clause in Charter1. The issue ofthe Chapter1is the concept of the denial of benefits.To find out what is the denial ofbenefits clause and its history. Then to understand the motivation behind the clause.The relationship between the standard of treatment and the denial of benefitsclause is the main issue of Chapter2. Will the extension of application of the mostfavor nation treatment impact the use of denial of benefits clause? The ambiguous fairand equitable treatment can arise the conflict with the denial of benefits clause?Chapter3has mainly concern about the practice of the denial of benefits clausein international investment disputes.With a case study, to analyze the short of thedenial of benefits clause.The main point of the Chapter4is discussing about the significance of denial ofbenefits clause to China. The denial of benefits clause is not the only way to China torestrict the treaty shopping.