'Denial Of Benefits' Clause In International Investment Treaties

After the Second World War,the United States adopted the 'denial of benefits'clause in Treaty of Friendship,Commerce and Navigation it concluded,which also be found in many modern international investment treaties and free trade agreements.Influenced by bilateral investment treaties of the United States,many other counties also mentioned the 'denial of benefits' clause in international investment treaties and free trade agreements.Over the recent twenty years,international investment arbitration has developed vigorously.In many investment arbitration cases,the 'denial of benefits'clause has been referred frequently.However,due to the rough wording and unclear regulations,lots of arguments has arisen in the practice of arbitration.As the largest developing country in the world,China is better to do more research in this area.This dissertation intends to make a comprehensive study on the evolution,application and improvement of the 'denial of benefits' clause,and puts forward some proposals of further practices for China.The main part of this dissertation consists of there chapters in addition to preface and conclusion:Chapter one introduces the definition and the evolution of the 'denial of benefits'clause.Firstly,analyzes the concept of the 'denial of benefits' clause,and compares it with the easily-confused definition of investor.Secondly,elaborates the evolution of this clause,establishes the foundation for next two chapters.Chapter two analyzes the legal issues of the application of the 'denial of benefits'clause.Combined with typical arbitration cases,this chapter analyzes the substantive issues first,including the applicable scope and the substantive conditions of application.Then,analyzes the procedural issues the clause caused in arbitral practice.Chapter there puts forward some proposals of the legal practice of the 'denial of benefits' clause for China.Firstly,analyzes the status quo of the 'denial of benefits'clause of international investment laws in China.Secondly,analyzes the policy considerations of the improvement of the clause.Thirdly,puts forward specific proposals for the substantive and procedural legal issues that may arise in the application of the clause.Finally,provides some advices for Chinese investor to improve corporate governance under the influence of the 'denial of benefits' clause.