China’s policy on ISDS reform
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China’s policy on ISDS reform book
This chapter analyses China’s attitude towards the main investor-state dispute settlement (ISDS) reform options, institutional competition on investor-state arbitration, and China’s aspirations and capacity to make a China-led ISDS institution, as well as obstacles to achieving this. Different stakeholders have advanced different proposals for ISDS reform. Some defend the current ISDS system, while others support the alternative of a multilateral investment court system. In consideration of the urgent need for protection of the rapidly increasing Chinese overseas investments, an effective ISDS mechanism is becoming unprecedentedly important to China. The main problem with the ISDS system is that it is based on a model of commercial arbitration. The basic goal of China in terms of ISDS reform is that the investor-state arbitration regime should be effective and efficient, striking a proper balance between investors’ protection and governments’ right to regulate, without any inherent pro-investor or pro-state bias.