Study On The Stabilization Clause In International Investment Agreements

In international investment activities, a natural contradiction is the one between investor gains and host country. An investor's ideal investment environment may contain these factors, liberal price, stable tax policy and predictable dispute resolutions, etc. Nevertheless, the host country wants to ensure legislative and regulatory autonomy and fl exibility and to maximize their tax benefits, and safeguarding citizens' human rights and national ecological environment from damaged. This c ontradiction can be solved by stability clause in international investment contracts.First of all, this paper discusses its role in balancing the advantage between business interests and legislative authority. Through the Multilateral Investment Agreement terms applying to the stability of the status quo analysis, this part summarizes the category and the protective effect in terms of the stability of treaties and agreements on investment.Then, this paper, in the stance of investors, analyses the legality and applicability of stability clauses. By discussing the stability and legitimacy of the process of application content on the application of body type, subject identity, terms, the proper law and applicable exceptions and other legal issues, combined with ICSID Case analyzes the content of the terms of the stability explain the problem, raise human rights issues, environmental issues in terms of the conclusion of stability, investors and host countries should be careful about the terms and stabi lity caused by the terms of the stabil ity of th e application in practice further elaborated exclusions stability clause applies.In the end, this paper helps resolving the conflict above and present recommendations for Chinese enterprises.