Chinese Mechanisms for Resolving Investor-State Disputes

Abstract

This article addresses China’s responsibility in resolving investor-State disputes as it is the second-largest FDI recipient after the United States. It questions why China thus far has rarely been involved as a respondent in international arbitration or any other dispute resolution mechanisms in relation to foreign investment. It attempts to examine China’s national system and practice for resolving disputes between foreign investors and the host State and investigates cultural and political reasons for why China has almost never been called to international arbitration to resolve disputes with foreign investors. Finally, it suggests some future directions of investment dispute settlement and calls for China taking more responsibilities in world affairs.