The Research Of Core Clauses In Chinese Bilateral Investment Treaties

With the rapid development of global economic integration and the1990s booming rise oftreaty changes, new characteristics and developments trend to be presented in the contentof bilateral investment treaty. Due to the late of contracting time, lack of enoughexperience and other reasons, a lot of loopholes and hidden dangers exist in China’sbilateral investment treaty, it is urgent to perfect and upgrade them. This paper takes threecore clauses of the Chinese bilateral investment treaty, which the treatment of investment,the expropriation and compensation, dispute settlement matters as the research object, andit take a comparative analysis of the objects in the United States and Germany, to explorefeasible scheme for treaty revision in the new Chinese background.The research in investment treatment terms focuses on the essence connotation of fairand equitable treatment, whether it constitutes a liability to pay compensation as well asthe most-favoured-nation clause apply to procedural matters. This part provides anin-depth analysis on the comparison of the most-favoured-nation clause, fair and equitabletreatment clause in China, the United States and Germany. Expropriation andCompensation terms mainly analysis the determination of the standard with indirectexpropriation and compensation. In part of investment disputes and settlements, the authortakes a deep research on the problems of exhaustion of local Remedies, umbrella clause,essential security and so on.The conclusion is that, in the China bilateral investment treaty, there are defects anddisunities in formulation, and it is not reasonable in using its own power, as well as notcomprehensive in defense clause settings. In detail improvement measures, it should toclarify the interpretation with the definition of fair and equitable treatment and theapplicable provisions of exceptions. The most-favoured-nation treatment must be ruled outthe applicable procedural matters. It should perfect the identification of indirectexpropriation, ensure that the measures conform to the interests of the public managementis out of the situation, take unified formulation standard in compensation. In theinvestment disputes and settlement aspects it should consider national interests first,eliminate all adverse factors of interference that from abroad, stick to not give up the reasonable power that belongs to the host country.By this study, I hope that these problems can take people’s attention to strengthenprevention for potential risk, in order to protect Chinese investors and investment of thelegitimate interests. And so much more, I hope the bilateral investment treaty continuouslyrevised perfect in the future contracting practice, to realize expected interests in Chinaunder the background of new era----mutual benefit and reciprocity, and economic growth;Peaceful rising, construction of a new international order.