Public Interests In International Investment Arbitrations And Their Implications To China

International Investment Arbitration between investor and state comes from International Commercial Arbitration which is focused on private disputes settlement, so some experts think it inclines to protect private investors rather than the host country in Investor-State Disputes. Most disputes are raised by the investor for dissatisfaction with the host country’s domestic policy. If the international investment arbitration is in favor of foreign investor with less consideration of public interest, that will impede the protection of public interest, development of international economy and credibility of international investment law. FDI plays an important role in China, so it is important to enhance the protection of public interest in international investment arbitration. This paper focuses on the implications to China on public interest in international investment arbitrations.The second part clarifies the definition of international investment arbitration and public interest in investment arbitration, analyses status quo of the protection of public interest in international investment arbitration, and points out the significance of public interest.The third part studies from the perspective of international investment law, and its major clauses which may influence the autonomy on public interest of the host country. The author points out the defects of the ways of accrediting arbitration, essential security interests exceptions provisions, expropriation clause and umbrella clause in BITs and IITs.The forth part starts from the point of international investment arbitration, and its major procedural problems that will hind the participation of the public in the host country. The author analyses the lack of transparency in arbitration, inconsistency of treaty explanation and decisions by arbitrators, which make the results of arbitrations unpredictable to the public.The last part proposes strategies for China to protect its public interest in international investment arbitrations. We should well define the provisions of accrediting arbitration, essential security interests exception clause, expropriation clause and umbrella clause, also improve the arbitration procedure by enhancing transparency, permitting the participation of amicus curiae, setting up an authority of treaty explanation and the Appellate Body.