The Application Of Diplomatic Protection In ICSID Convention

As a traditional political means of resolving investment disputes,diplomatic protection means that a country takes diplomatic action to protect the legitimate rights and interests of its citizens in foreign countries and protect them from the illegal acts of the host country.However,the imperfect development of the diplomatic protection often leads to the intervention of the state.In order to improve the investment climate and promote the continuous How of international private capital to developing countries,under the auspices of the International Bank for Reconstruction and Development,the Convention oin the Settlement of Investment Disputes between the State and Other Nationals was opened signing in Washington and the International Investment Dispute Resolution Center was established.Iin order to create an international court which is truly neutral and allows investors and host countries to freely choose to enter,thus eliminating the involvement of the investor's home country in the investment dispute,the ICSID Convention provides for the concept of diplomatic protection and the application of diplomatic protection and arbitration in its Article 27.This limitation undoubtedly enhances the application of ICSID arbitration in resolving international investment disputes,and leads to the diminishing application of diplomatic protection in the field of international investment.However,diplomatic protection,as a traditional means of international dispute resolution,can still play an important role.In particular,when investors are facing foreign investment,they are not only faced with the risk of normal investment decision-making,but also face risks related to the political,social and legal aspects of the host country.When investors encounter political risks that are difficult to control,and the existing international investment system is also difficult to effectively guarantee the safety of overseas investment,the reasonable exercise of diplomatic protection by the investing country can be a good means of safeguarding the interests of investors,the rules of international law and even the legitimate interests of the state.This paper analyzes the international investment dispute settlement methods,the application and defects of diplomatic protection and the establishment of the ICSID Convention.On the basis of analyzing the content of diplomatic protection of the ICSID Convention,it summarizes the applicable conditions and applicable consequences of the diplomatic protection clause,and points out the application defects of the diplomatic protection of the ICSID Convention.On this basis,combined with actual needs,the paper proposes the reform of the ICSID Convention's diplomatic protection content.Combined with China's needs in international investment practice,it puts forward the legal countermeasures that China should take before submitting to arbitration,after submitting to arbitration and after arbitral award.