Research On The EU Investment Court System

With the acceleration of economic globalization,overseas private direct investment activities have experienced rapid growth both in quantity and scale,and have played a positive role in promoting the economic development of the host country.In this process,investment disputes also arise between investors and host countries.International investment arbitration has effectively resolved this dispute to a certain extent,but it has gradually exposed some problems.Procedurally,the Investor-State Dispute Settlement system has problems of arbitrarily expanding jurisdiction,lack of transparency and openness,and partisan arbitrators;physically,the Investor-State Dispute Settlement system has been criticized for making diverse arbitrations,being partial to investors and neglecting the rationality and necessity of the regulatory power of the host country.The application of the system has gradually become difficult,and the voice of improvement is rising.As an important investment entity in the world,the EU is also facing the above problems of investment arbitration.The entry into force of the Lisbon Treaty,which came into effect on December 1,2009,endow the EU with the exclusive function of adjusting foreign direct investment.The EU has initiated negotiations about investment matters with other major world economies.The EU has proposed an investment court system in the proposal for the Transatlantic Trade and Investment Partnership Agreement negotiated with the United States.From the perspective of reform,EU investment court includes improvements and judicial reforms of current investment arbitration mechanisms.These systems have the characteristics of guaranteeing the regulatory power of the host country,improving the procedural fairness and strengthening the consistency of the ruling,but the idea of a good starting point may face challenges in the implementation process.In the EU itself,investment courts may impact the existing legal order;outside the EU,there are problems with the recognition and enforcement of investment court decisions,and the permanent courts and appeal mechanisms may reduce the attractiveness of investors to bilateral investment agreements.The decision made by the foundation-based appeal mechanism may exacerbate the inconsistency of the outcome of the decision and hinder the establishment of multilateral investment rules.Negotiations on China-EU bilateral investment agreements are underway,and the investment markets of the EU and China are full of potential.The outcome of the negotiations between the two sides also represents the direction of international investment rules.The investment dispute resolution mechanism is a key issue in the negotiations.Regarding the investment court proposal put forward by the EU,China should analyze the investment reform trend behind the system.On the one hand,China should establish a foreign investment dispute resolution system,providing investors with effective and convenient local remedies,and on the other hand,Improvement of existing Investor-State Dispute Settlement System is also important.In addition,China should strengthen research on the rules of international investment entities,which is an important measure to prevent and resolve investment disputes.