Research On The Legal Issues Of Indirect Expropriation Of International Investment

Indirect expropriation has always been a controversial issue in international investment law.With the development of global economic integration,the rapid growth of investment between countries brings not only opportunities,but also challenges.In recent years,not only developing countries often face the risk of indirect expropriation,but also developed countries often face the challenge of investors.The problem of indirect expropriation has become a problem that countries must face in economic investment.Because the international investment law does not make a clear definition of indirect expropriation,the identification of indirect expropriation in practice is more complicated.With the enhancement of China's economic strength,the total amount of foreign investment and the introduction of foreign capital are increasing rapidly,and indirect expropriation has become one of the risks that must be prevented in China's international investment,and the study of indirect expropriation has practical significance for China.This paper includes three parts: introduction,text and conclusion.Article is divided into four sections:Chapter one is an overview of indirect expropriation.Because there is no clear definition of indirect expropriation in international investment law,it is only a general description.This paper analyzes and summarizes from the practice of international investment law,that is,arbitration,that indirect expropriation is the behavior of the government that deprives investors of their property rights and produces the same effect as direct expropriation.The conflict and coordination between host country's right of regulation and investor's interest is the essence of indirect expropriation.How to balance the relationship between the two needs to rely on sustainable development theory.Chapter ? Determination of Indirect Collection.The three identification criteria of indirect expropriation are the key to the identification of indirect expropriation.The evaluation factors of "pure effect standard" and "pure purpose standard" are too single,and the judgment criteria of "combining effect and mousse standard" can make fulland objective judgment on government behavior.The definition of the legality of indirect expropriation needs to consider four factors,namely,public interest,non-discrimination,due process of law and compensation.Chapter ? Compensation for Indirect Collection.The compensation standard is the premise of calculating the compensation for expropriation.The illegal indirect expropriation adopts the "restitution" standard in the international practice,and China should adopt the full compensation standard for the legal indirect expropriation,which is more suitable for the actual situation of China's international investment.The fair market value method and the real loss-profit method can be used to calculate the amount of compensation collected.Chapter ?: China's response to indirect risk collection.As a big country of capital import and export,China should base its risk of indirect expropriation on domestic and foreign consideration.Through the analysis of the expropriation clauses in BITs,recognizing the shortcomings in investment agreements,the formulation of future BITs should include a sustainable development clause in the preamble,a judgment clause and an exception clause for indirect expropriation,and a unified calculation clause for indirect expropriation compensation.The relaxation of the jurisdiction of the investment dispute settlement mechanism poses a hidden risk for our country,and appropriate limitation of jurisdiction should be considered.Finally,improve the overseas investment insurance mechanism to provide protection for overseas investment of Chinese enterprises.Indirect expropriation is essentially a conflict of interest between the host country and investors.As a large international investment country,China should pay more attention to the study of indirect expropriation.The identification criteria of indirect expropriation should adhere to the "balance between effect and purpose criteria ",taking into account the four elements of public interest,non-discrimination,due process and compensation.The compensation of legal indirect levy and illegal indirect levy should adhere to different standards and take into account the interests of both the host country and the investor.Finally,China should improve the bilateral investment agreement and overseas investment insurance system as soon as possiblein the prevention of indirect expropriation,so as to ensure the international investment interests of our country.Through the above contents,this paper hopes to put forward practical and feasible suggestions for the response of indirect expropriation risk through systematic analysis and argumentation on all aspects of indirect expropriation,to safeguard the property interests of overseas investment of Chinese enterprises,and to ensure the exercise of our national economic sovereignty.