A Study On China’s Scheme Of ISDS Mechanism In The China-EU Comprehensive Agreement On Investment

The China-EU Comprehensive Agreement on Investment(CAI)was negotiated at the end of 2020,but the Investor-State Dispute Settlement Mechanism(ISDS)in it still needs to be implemented two years after the agreement comes into force.The main reason for the shelving of the ISDS mechanism is that the current ISDS mechanism has defects.The international community has put forward various reform proposals to reform these defects.However,China and the EU have different understandings on the direction of the ISDS mechanism reform and have not yet reached a consensus.The China’s scheme of the ISDS mechanism in CAI has two logical starting points,namely,the international investment status and the right to speak in the formulation of international investment rules.The two are the key factors affecting the design of the ISDS mechanism.The logical starting points of the EU and China’s scheme are the same.Both China and Europe have mixed international investment identities,and both actively pursue the right to speak internationally.Before proposing a specific ISDS mechanism,it is necessary to clarify its value purpose,because it has a guiding role in the design of specific functions.The mixture of international investment identities requires the ISDS mechanism to reflect the concept of balance;the pursuit of international voice requires the ISDS mechanism to reflect the concept of sustainable development;participation in global governance requires the ISDS mechanism to reflect the concept of global governance.The value purpose of the EU and China’s scheme are also the same,and the ISDS mechanism in CAI should reflect these three concepts.The structural reform of the ISDS mechanism is a fundamental issue;the adjudicator is an important factor affecting the smooth operation of the mechanism;the right to appoint parties is a key difference between China and Europe;the treaty interpretation mechanism is an important way to balance the contracting states and the tribunal.Based on the logical starting point and value purpose of China’s scheme,this paper proposes an ISDS mechanism that is in line with China’s interests as much as possible,and discusses the possibility of the EU and China reaching a consensus on various systems,and also provides options for concerns with greater differences system plan.The China’s scheme in this paper fully responds to these negotiation priorities that affect the legitimacy and stability of the mechanism,aiming to provide reference options for China and the EU to negotiate the ISDS mechanism of the China-EU Comprehensive Investment Agreement on Investment in the future,and to provide a new model for the formation of China’s BIT model.