Research On Host Country Counterclaim In International Investment Arbitration

Against the background of the rapid development of international investment,the number of arbitration cases between investors and host countries has increased dramatically in international investment arbitration.More and more cases involve public interests such as the host country’s environment,health,and public health.The private interests of host countries and investors are increasingly drawn obvious.Moreover,due to the international investment dispute settlement mechanism’s partiality towards foreign investors and the great uncertainty of the international investment arbitration rules,the jurisdiction of the international investment arbitration tribunal has gradually expanded,which has greatly increased the number of host countries being sued by foreign investors to the international The possibility of investing in an arbitral tribunal.This has caused the vast number of developing countries,which are usually host countries,to repeatedly face high compensations,which has a great impact on their ability to manage the national economy,and has made many developing countries with tight budgets more reluctant.The international investment arbitral tribunal’s huge compensation award against the host country has formed a chilling effect on the host country in exercising its regulatory power to protect the public interest.Under the long-term financial overwhelmingness of the host country,the trend of counterclaims to the International Investment Arbitration Tribunal has been irreversible.As a response to the imbalance of interests between investors and the host country,the host country’s counterclaim is undoubtedly of great potential.However,in the practice of arbitration,the host country’s counterclaim to the international investment arbitral tribunal has many problems in the entity and procedure.Such as the arbitration agreement of the host country’s counterclaim,the determination of the qualifications of the investor and the host country’s subject,the correlation between the counterclaim and the arbitration request,and the determination of the applicable law to determine the investor’s obligations.Judging from recent jurisprudence in handling counterclaims,conflicts between arbitral tribunals are still ongoing,and the procedural and substantive issues in handling counterclaims in arbitration need to be resolved urgently.As the counterclaim issue of the host country has only become increasingly prominent in recent years,related research at home and abroad has not been thorough enough.Therefore,this article attempts to explore the existing arbitration rules,bilateral investment agreements(BIT)and international investment agreements(IIA),and through empirical research on a large number of cases,researches on the existing problems of counterclaims in the host country,and then analyzes possible solutions.And China’s response,with a view to rebalancing international investment interests and the smooth operation of the Chinese economy.The body of this article is divided into three chapters:The first chapter is an overview of host country counterclaims in international investment arbitration.This chapter mainly reviews the current arbitration rules and the counter-claim provisions or agreements in international investment agreements.First,it discusses counter-claims in the host country,and reviews counter-claims in international investment arbitration.Finally,the theoretical and practical value of host country counterclaim in international investment arbitration is discussed.The second chapter is about the problems of the host country’s counterclaim in international investment arbitration.This chapter will analyze the arbitration practice of the host country’s counterclaim based on the previous arbitration rules and the provisions or agreements on counterclaims in the international investment treaties,and summarize the current four major issues in the host country’s counterclaims Analyze and discuss the problem.The third chapter is the countermeasures of counterclaims of the Middle East host countries in international investment arbitration and China’s response.On the basis of Chapter 2,this chapter attempts to propose solutions to existing deficiencies based on existing problems of arbitration practices and Chinese and foreign contracting practices of counter-claims in the Middle East.It also attempts to propose China’s response strategies to China’s specific situation.