China’s Engagement in ISDS Reform: Text, Practice, and Political Economy

36 Pages Posted: 9 Aug 2022

See all articles by Shen Wei

Shen Wei

Shanghai Jiao Tong University Law School

Shuping Li

University of Hong Kong, Faculty of Law

Date Written: 2021

Abstract

The investor-state dispute settlement (ISDS) system is such a means to an end of further economic development and wider social political goals. With major protective provisions of expropriation against compensation, fair and equitable treatment, national treatment, most-favored-nation treatment, full protection and security and umbrella clause, it helps establish a predictable, transparent, and enforceable legal regime to protect foreign investors’ legitimate expectations and lawful investment. As China intends to attract foreign investments by offering a stable business operation environment, its signing a large number of BITs and FTAs may help reduce political and socio-economic risks, which give states, businesses, and individuals the confidence to work in a coordinated manner. The economic development goal, rule of law strategy, tense US-China relations, ideology of multilateralism and community of common destiny, all add up to China’s inclination to incremental but effective ISDS reform.

Keywords: ISDS, ISDS Reform, BIT, International Investment Arbitration, Political Economy

Suggested Citation

Wei, Shen and Li, Shuping, China’s Engagement in ISDS Reform: Text, Practice, and Political Economy (2021). China and WTO Review, 2021:2; 269-304, University of Hong Kong Faculty of Law Research Paper No. 2022/42, Available at SSRN: https://ssrn.com/abstract=4166440

Shen Wei

Shanghai Jiao Tong University Law School ( email )

No.1954 Huashan Road
Shanghai, Shandong 200030
China

Shuping Li (Contact Author)

University of Hong Kong, Faculty of Law ( email )

Pokfulam Road
Hong Kong
Hong Kong

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