Study On The Legal Consequence Of Investment Corruption In International Investment Arbitration

International investment has always been high incidence of corruption.Even today,the problem of international investment corruption is still very serious.Investment corruption has already become an element which shall be considered by arbitral tribunal in international investment arbitration.The legal consequence of international investment corruption has also attracted increasing attention.General speaking,there are two types of relevant cases.In the first type of cases,public official of the host state accepts or solicits bribes,and their decisions are based on the bribery they receive,which directly infringe the lawful rights and interests of investors who did not pay any bribe.The common practice of tribunal in this type of cases is to indicate that lawful rights and interests of investors were infringed and officials' acts breached the host state's obligation to protect investors.On the other hand,in the second type of cases,host states invoke a jurisdictional or substantive defense against claims submitted by investors for the reason that the establishment and acquisition of investments have already been tainted by corruption.The common practice of tribunal in the second type of cases is that in the light of international public policy as well as other legal resources,investments tainted by corruption cannot be protected and investors'claims were denied accordingly.In this article's point of view,tribunal's common practice in the second type of cases ignores the interest balance between host state and investor and even violates the principle of unjust enrichment.Furthermore,it also misleads the policy choice of the host state.The consequence of such common practice not only disrupts international investment order and weakens host state's ability to attract foreign investment,but also obstructs the implementation of international anti-corruption policy.Considering the problems of tribunal's common practice,this article aims to select a new method for tribunal to identify the legal consequence of international investment corruption.Investor's property in host state per se should be protected according to investment agreement shall be the principle of this new method.This article will also take a comprehensive analysis for the legitimacy and rationality of this new method.