The Research Of Calvo Doctrine In Bilateral Investment Treaties

Having experienced the adaptation period of the reform and opening up policy,in order to attract largescale foreign investment and to stimulate domestic economicdevelopment, China has singed a number of bilateral and has permitted multilateralinvestments treaties with other countries. Although this has helped to boost theChinese economy it also creates potential risks.Of these the most worrisome is thepossibility of numerous international arbitration cases which would result in a largecost to the country. As a result of this happening in other countries, the CalvoDoctrine has been re-emerged as a means of protection for countries involved ininternational investment. In different historical periods, the attitude towards the Calvodoctrine has varied according to a particular country’s vested interests. As a generalrule,this attach can be seen as the northern countries favoring BITs and the southerncountries wanting to implement the Calvo Doctrine. As a developing country, China’smost sensible approach is based on a practice of various types of internationalinvestment applying the Calvo Doctrine and making it an integreal part of theagreements. As a conclusion, China needs to carefully filter the terms of agreements,to cherish its rights of jurisdiction and to retain its economic sovereignty, in order toeliminate potential sharp economic fluctuate.