Research On Essential Security Exception Of Bilateral Investment Treaties

International investment between different countries increases gradually with the development of economic globalization. Bilateral investment treaty is a legal tool used to protect investors which has become more and more important. Bilateral investment treaty has become an important part of international investment law. Essential security exception clause is essential terms of bilateral investment treaty. The host country takes measures to protect its essential security clause interests or its basic public order. If the action meets the specification of essential security exception clause, the host country can relieved liability. The essential security exception clause is called "risk allocation" and "safety valve".This paper is divided into four parts in addition to the preamble and conclusion. The first parts of this article introduce the concept of essential security exception clause of bilateral investment treaty. Then propose the role of essential security exception clause. Finally, classify the essential security exception clause according to different criteria. The second part firstly list three cases about the essential security exception clause. And then analyze the three cases. The third part point out the flaws of essential security exception clause Provision about the major security exception clause is not clear and lack of supervision and restriction mechanism. At last, put forward the proposal of the essential security exception clause. If you want to apply the essential security exception clause. You must satisfy the conditions. Establish supervision and restraint mechanism.Ensure to distribute the burden of proof. The fourly part introduce the contracting practice of bilateral investment treaty. Then put forward the shortage of bilateral investment treaty. Finally present recommendations about the essential security exception clause. Establish insurance system of overseas investment. Signing the bilateral investment treaty must distinguish developed country and developing country. Participate in international investment negotiations actively. Establish our own template of the bilateral investment treaty.