The Choice And Perfection Of Compensation Standards For Indirect Expropriation In China’s Bilateral Investment Agreement

Today,the 14 th Five-Year Plan is passed,and the concept of international and domestic dual cycles has been proposed.my country will integrate into globalization and lead globalization with a more active attitude.This dual identity brings both opportunities and challenges to my country.In the bilateral investment agreements my country has signed,different standards and different regulations have been shown on the issue of indirect expropriation and compensation.In recent years,there has been a trend of recognizing the Hull principle.In response to this issue,this article selects my country’s bilateral investment agreements in the past two decades to sort out and refine the issues,and select from the arbitration cases published on the ICSID official website,combining legal practice and arbitration experience,and proposes specific ideas for improvement.And the method,the specific logic is as follows:The first part is the introduction.The second part is a review of the existing standards.I divides them into conservative,open,and open according to the content and background of the times.According to the three stages of interest balance,the author selected the bilateral investment agreements signed by China since 2000 as a sample,and divided them into four points: compensation standard,valuation method,interest determination,and payment method.there are problems of interest imbalance caused by the expansion of Hull’s principle in the selection of compensation rules.In the third part,I started with case analysis and selected Cai Yeshen v.Peru,Chorzów Factory,and ADC v.Hungary as the main samples and found that: in the compensation rules,the large-scale application of the Hull principle has caused the host country’s interests to be damaged;The fair market value makes the compensation result unfair.The combination of the two has completely tilted the balance of interests to foreign investors,forming an unbalanced and uncoordinated compensation mechanism.The fourth part,it is recommended to replace the Hull principle with the principle of appropriate compensation.In order to make up for the ambiguity of the principle of appropriate compensation,it is recommended to introduce the principle of proportionality,add discretionary factors,and combine professionalism.With the help of the staff,we can get a better solution in the case.It is recommended to replace the fair market value with a reasonable value as the compensation benchmark,and implement a more definite interest plan and a more flexible payment method.Regarding the specific amendment methods of the bilateral investment agreement,the author combed through the past practice in my country,and came up with three amendment methods: re-signing,amending on the basis of the original text,and signing additional protocols.In addition,through a comparative analysis of the 2004 BIT model in the United States,I suggest that my country has also adopted this method and launched its own BIT model.