Research On The Issue Of Indirect Expropriation Under International Investment Law

With the promotion of'One Belt One Way' Initiative,the proportion of China's foreign direct investment continues to increase.In China,the international investment policy also develops from the simple'Bring In' to the combination of'Bring In'and 'Go Out'.In the process of "Go Out",Chinese enterprises are also facing various risks.The risks indirectly expropriation by the host government are more obvious and worthy of attention.The two core issues of indirect expropriation are the identification and compensation.For China and Chinese enterprises,it is necessary to prevent indirect expropriation of the investment host country.The case of CRCC v.Mexican Government is one of the cases involving indirect expropriation in recent years.This paper introduces the case,and analyses the identification and compensation of indirect expropriation in this case,and then try to give some forward suggestions for Chinese and Chinese enterprises to deal with foreign indirect expropriation.Identification of indirect expropriation including clarify the meaning of indirect expropriation,learn about the difference between indirect expropriation and nationalization.The object of indirect expropriation is investor's investment,including tangible property and intangible property,the form of indirect expropriation is divided into creeping expropriation and regulatory expropriation;The definition criteria of indirect expropriation are defined by traditional definitions:single effect theory,single purpose theory,combined effect and purpose theory,gradually absorb the experience of international arbitration practice,introduce the principle of proportionality and reasonable expectation.Then comprehensively considers that whether the Mexican government constitutes indirect expropriation in this case or not.The problem of compensation for indirect expropriation also means the principle and method of compensation for indirect expropriation.The compensation principle of indirect expropriation is consistent with that of general principle of,which is divided into the principle of 'full,effective and timely' compensation,the principle of'no compensation' and the principle of'appropriate compensation'.The compensation methods include'market price law' and other methods.These theories help to make sure the indirect expropriation compensation principle,compensation time and compensation method should be adopted in this case,so as to estimate the compensation amount for CRCC in this case.In view of the host government's collecting behavior,this paper seeks the way to solve the problem of Indirect Expropriation from two aspects:the perfection of the terms of expropriation and compensation in bilateral investment treaties between China and foreign countries,and the prevention of indirect expropriation in foreign investment by Chinese enterprises.