Research On The Issue Of Transparency In International Investment Arbitration

The principle of privacy makes great contribution to the development of international investment arbitration in history. However, with the rapid development of international arbitration, the legitimacy of the principle of privacy has been frequently questioned and challenged. The mechanism of investment arbitration put too much emphasis on the protection of investors to give enough attention to public interests. To strengthen the security and offer more focuses on the public interests of the target country, the reform of international arbitration is imperative.In recent years, the issue of transparency is a highly focused issue. The adoption of the principle of transparency expands from international trade law to international arbitration. Increasing number of investment agreements have include the articles of transparency to illustrate the obligations in this regard. Though the practice varies in practice of each country, the support for the reform of transparency in international investment arbitration has been shown by arbitral courts.NAFTA has initiated the transparency reform long before in the legislation practice. Through its free trade committee, a explanation notice is also given to enhance the importance of transparency principle. America and Canada also include similar articles in their BIT, and the same goes for ICSID and UNCITRAL legislation.Currently, China is transforming from capital importer to capital exporter. In recent years, China’s FDI remains a constant growth, and with this trend, disputes aroused between host states and Chinese investors also increase in the process. How to defend the legal rights and efficiently solve such disputes have become one of the major concerns for Chinese investors. The reform of transparency has represented the major trends of international investment arbitration, and the value carried by such reform also reflects the direction of future international legislation and civilization development trends. Under the circumstances, China should act more actively to engage in such transparency reform. which not only including participation in the drafting of rules but also in considering how to better defend national interests.China should take more advantages of the current reform and be cautious in the process to defend its material interests in international investment. China should also acknowledge the conflicts between the principle of privacy and the principle of transparency to perfect a legislation structure catering China’s national situation.