The Restrictions And Responds Of ISDS Mechanism To The Regular Right Of Host Country

The Investor-State Dispute Settlement Mechanism(ISDS)established after the Second World War played an important role in resolving issues such as property acquisition,labor and capital circulation of multinational corporations.However,in the past ten years,the ISDS mechanism has been widely criticized.Critics argue that in recent years,the ISDS mechanism has enabled investors to bypass the host country's own legal system and seek external forces for pressing host countries to change their policies and laws.Therefore,it had an impact on the public interests of the host country,thus infringing on the regulatory power of the host country and causing the host country to fall into the “regulatory chilling”.At present,the expansion of investment definitions in the ISDS mechanism,the application of fair and equitable treatment principles,the lack of transparency,and the lack of appeal mechanisms are the main reasons leading to restrictions on the host country's regulatory power.Today,facing the increased demand of protection of public interest and environment of citizens,there is a effective way for host states to solve the regulatory chilling.The way is to modify the unsuitable part of ISDS,including restricting the scope of related definitions and increasing transparency when new BITs are concluded.When concluding a new BIT in the future,China should notice that the old BIT is not suitable for the current situation of economic and political development.China should learn experiment from the similar country and draw a balance between protecting the interests of private investors and safeguarding the host country's regulatory power.