The Research Of Stabilization Clauses In International Investment

With the development of economic globalization, international direct investment has become the main way of economic communication between countries, although multinational investment trend is growing rapidly, we shall see faces that risks and uncertainties exist at the same time. Changes of investment environment have restricted the development of international investment, under this circumstance, stabilization clauses are designed for protecting the interest of investor. However, since stabilization clauses have a late start, domestic and foreign research to the clauses has not formed mature system, in order to make stabilization clauses play a part in the international investment, it is necessary to establish a comprehensive system of stabilization clauses theory. It will also do good to increase the consistency of the arbitral award in the arbitration of investment disputes and reduce the discretion of the arbitration tribunal.This paper consists of four chapters in addition to the introduction and conclusion.Chapter one gives us a theoretical analysis on stabilization clauses. First it points out the conception and development of stabilization clauses, also,it introduces the types of stabilization clauses, including freezing clauses, equilibrium clauses and hybrid clauses. Then the legality of stabilization clauses are summarized and judged, in all, I think the better way to analyze the validity of stabilization clauses is conditional recognition of stabilization clauses.Chapter two makes analysis on the cases of ICSID tribunal in recent years.These cases can be divided into three types, these are legal discussion on stabilization clauses, indirect reference to stabilization clauses and direct application of stabilization clauses. Finally I make a summary to the develoment history of stabilization clauses.Chapter three reveals some conficts and balanced measures between invesror and host country if stabilization clauses are added in the invest contract. From the pespective of intersts, host country and investor stand in the opposite position, how to deal with stabilization clauses are listed in the section. Besides, to perform the best effect of stabilization clauses, it should be subject to the decision-making authority of host coutry.Chapter four points out how to protect our interests as host country or as Chinese investor. Recently,China has attracted foreign capital inflows, many preferential policy are setted to encourage foreign enterprises to establish all kinds of investment projects, investor with rich investment experience often tend to add stabilization clauses in the agreement, however, our government should take a cautious attitude. At the same time, in view of the overseas investment started late, the experience of Chinese investors are relatively scarce, investors should be careful when sign investment agreement with host country.