The Restrictive Interpretation Of "Reasonable Expectations Of Investors" Under The Fair And Equitable Treatment Clause

With the continuous development of international investment arbitration practice,the doctrine of reasonable expectations of investors has developed from the auxiliary explanation factor under the fair and equitable treatment clause to the independent claim basis.When the arbitral tribunal quotes the fair and equitable treatment clause to protect the reasonable expectations of investors,it does not clearly clarify the legal basis and scope of this doctrine’s application.Firstly,based on the practice of investment arbitration,this dissertation sums up the ways of expanding the reasonable expectations of investor by the arbitral tribunal under the terms of fair and equitable treatment,and points out its irrationalities.Then,the author uses the latest treaty reform practice of EU on fair and equitable treatment clauses for reference,conducts restrictive interpretations on investors’ reasonable expectation under fair and equitable clauses,analyzes its constituent elements and exceptions,aiming at limiting the expansion interpretation of arbitral tribunal,so as to better balance the rights of investors and the supervision sovereignty of the host country.Finally,in order to cope with the latest development of investors’ reasonable expectations,the author puts forward the practical and effective risk prevention measures from the different positions of China as the host country to attract foreign investments and domestic investors to invest abroad.