On The Calculation Criteria Of Compensation For Foreign Investment Expropriation In The View Of International Investment Law

With the advancement of economic globalization,the focus of international investment relations has transformed to investment liberalization.This result that interest balancing principle becomes the mainstream in international investment relations.On the other hand,for foreign investment expropriation,traditional theoretical criteria for expropriation compensation can no longer meet the practical requirements of foreign investment expropriation.Hence there arise numerous arguments on discounted cash flow technique and book value technique of the financial statements,instead of on“Hale Principle" and appropriate compensation criteria.It is of significance to distinguish the compensation criteria and the compensation calculation criteria,as well as to systematically study the compensation calculation criteria.Through introducing the compensation of foreign investment expropriation,this thesis analyzed historical evolution of compensation theory,and then clearly pointed out the significance of studying compensation calculation criteria for foreign investment expropriation.On this basis,it clarified the compensation calculation criteria for later selection and application,by analyzing the guiding principle of selecting specific calculation criteria and the nature of the property being expropriated,as well as identifying the“sustainable business value" of enterprises.Then,it focused the arguments on discounted cash flow technique and book value technique of the financial statements,and systematically researched the calculation criteria of compensation,concerning on the problems such as " fair discount " of compensation amount and the relief of compensation liability.At last,it proposed the countermeasures on China’ s compensation calculation criteria of foreign investment expropriation,based on the status of domestic legislation and the practice of international treaty.As a capital export and import power,China shall clearly adhere to the appropriate compensation for foreign investment expropriation,and fight for its own interests by book value technique of the financial statements.In the meantime,we had better to have a good knowledge on other calculation criteria such as discounted cash flow technique,and the treatment of "fair discount" for compensation amount.Only in this way,can we prevent the developed countries carrying out substantial“Hale Principle" through discounted cash flow technique and using the excuse of fair market value.