Study On The Legal Issues Of The Right To Regulate Under ISDS System Of International Investment Agreement

Investor-State Dispute Settlement Mechanism is a mechanism for resolving investment disputes between states and foreign private investors.In the early international investment agreements,there were no special provisions for the settlement of investment disputes between foreign investors and the state,and they could only be handled in accordance with customary international law or through diplomatic protection,thus making early investment dispute resolution strongly political.The emergence of the ISDS mechanism has realized the depoliticization of dispute settlement,avoided the direct conflict between the investor 's home country and the host country,and helped reduce the occurrence of international tensions and the use of force.After nearly half a century of development,the ISDS mechanism has safeguarded the legitimate rights and interests of foreign investors to a certain extent,has also reduced the host country 's lack of legitimacy restrictions on foreign investment,and has also improved its domestic policies to a certain extent.The environment and the absorption of foreign advanced experience have positive significance,and promote the flow and development of international investment worldwide.However,the ISDS mechanism focuses too much on investor protection and ignores the host states' regulatory power,which is manifested in the expansion of foreign investors' right to bring arbitrations against host states,vague interpretation of Fair and Equitable Treatment provisions,single final rule system,and an overly strict confidentiality mechanism for arbitration.The Right to Regulate refers to the freedom of a country to control political,economic,legal and other aspects within its own territory.The regulatory right of host states in international investment law is an important part of safeguarding national economic sovereignty.It is the basic right of the host country to safeguard its public interests in the field of international investment.It can independently formulate economic development policies and protect the healthy and orderly development of the country's economy.From the perspective of international law,regulatory power belongs to the scope of national sovereignty.The source of regulatory power is based on a strong objective basis of domestic law.Therefore,there is no need to rely on the agreement or authorization of international trade or investment agreements.The host can apply for arbitration on a measure involving the public interest in the host country,and the host country's regulatory power will now face the risk of modification or huge compensation.At present,with the growing calls for ISDS reform,China is also at the stage of negotiating China-EU bilateral investment agreements and other international investment agreements.However,as China is in the field of international investment dispute resolution,whether it is a host country or an investor's home country,it still lacks the experience it deserves.The position on the regulatory power of the host country will not only affect China's attractiveness as a developing country to foreign investment,but also relate to China's investment security for the “going out” Chinese enterprises as a major capital outflow country.As a dual power with both capital outflows and capital inflows,China will usher in more and more international investment arbitration cases in the near future,facing a severe test.Therefore,it is of great value to discuss how to conclude international investment agreements in the new environment.It is of practical significance for guiding China to reform international investment agreements and resolve international investment disputes.What position does China take on the issue of regulatory powers of the host country? The investment interests of major investing countries are also the largest developing countries with a mission to build a new round of international investment order.As a global capital exporting and importing country,China should actively participate in the formulation of new rules for international investment.This is in line with the current international investment development trend and also in order to safeguard China's foreign investment interests,or to increase China's international investment rule governance right.which performed.China should explore providing constructive solutions to the reform of the ISDS mechanism and the balance of rights between investors and the host country,accurately grasp the development trend of regulatory power,and take an active role in global investment governance.Development model,re-examination and establishment of regulatory positions and rules in international investment agreement negotiations,make full preparations for occupying a favorable position in future international investment competition,and create a good and sustainable new international investment environment.