The Impacts Of BIT Dispute Settlement Mechanism On China’s Outward Foreign Direct Investment

Since President Xi proposed the “The Belt and Road Initiative” area in 2013,by the end of 2016,China’s direct investment stocks along “The Belt and Road Initiative” increased to US$1.4892.38 billion——with an average annual increase of 25% over three years.From January to November 2017,China’s new direct investment along the “The Belt and Road Initiative” area was US$12.37 billion.China’s increase in direct investment along “The Belt and Road Initiative” area is accompanied by an increase in the number of investment disputes.Due to differences in politics,economy,laws,and culture,the risks of cross-border capital flows have increased.The game between the two countries has led to a tense investment environment and significant regional and national risks.At the same time,however,the development process of multilateral investment agreements has been hindered by the involvement of multiple parties and it is difficult to continue.The Bilateral Investment Agreement(BIT)became the main legal basis for the coordination of investment disputes.In BIT,the dispute settlement mechanism,as an important clause in regulating disputes,plays a decisive role in the crossborder flow of funds.Therefore,studying the dispute settlement mechanism has the necessary practical significance for China’s direct investment along “The Belt and Road Initiative” area.This article is divided into six parts.The first chapter mainly introduces the research background,research significance and research methods of the article,and puts forward the innovation and deficiencies of this article.The second chapter systematically reviews the domestic and foreign research on dispute settlement mechanisms and foreign direct investment relations,and summarizes them.The third chapter is an analysis of the current status of China’s direct investment in “The Belt and Road Initiative” area and an analysis of the current status of China and “The Belt and Road Initiative” investment agreement,and divides the countries along the “Belt and Road” into different regions to more accurately determine China’s The development situation of investment along the “The Belt and Road Initiative” and the development space for the agreement.The fourth chapter is the process of analysis and quantification of the dispute settlement mechanism.By systematically collating the contents of the dispute resolution mechanism,referring to previous studies,quantifying it,and arranging its impact path,it lays the theoretical foundation for Chapter 5.The fifth chapter is an empirical analysis.With reference to the “China’s Foreign Direct Investment Bulletin”,“The Belt and Road Initiative” area of the “China’s Foreign Direct Investment Bulletin” statistics will join the South Korea in 63 countries and regions,and China will adopt these 64 countries in 2008-The 2016 direct investment data,using the extended gravity model,takes the quantitative results of Chapter 4 to study the relationship between the dispute resolution mechanism and China’s direct investment along “The Belt and Road Initiative” area.The sixth chapter is a summary of the previous chapters,proposes policy recommendations based on the research results,and proposes further expectations for this research.Through theoretical and empirical analysis,this paper finds that the existence of the BIT dispute resolution mechanism is conducive to China’s direct investment along the “One Belt and One Road,” but this effect is more pronounced in developing countries.At the same time,it found that the higher degree of arbitration of the dispute settlement mechanism,the greater the institutional deficiencies for developing countries,and the more conducive to their investment;for the developed countries,this effect is not significant,the focus of signing BIT content should be put In the principle of access,most benefitsNational treatment and other aspects.At the same time,it has also been found that geographic distance,the size of the investment country and the host country’s market,system,and technical level have a certain impact on China’s direct investment in the host country.