Proceedings of the 5th International Conference on Economic Management and Model Engineering, ICEMME 2023, November 17–19, 2023, Beijing, China

Research Article

Restrictive Interpretation of Investors’ Legitimate Expectations in the Fair and Equitable Treatment Clause in International Investment Arbitration

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  • @INPROCEEDINGS{10.4108/eai.17-11-2023.2342659,
        author={Tianshuo  Zhang},
        title={Restrictive Interpretation of Investors’ Legitimate Expectations in the Fair and Equitable Treatment Clause in International Investment Arbitration},
        proceedings={Proceedings of the 5th International Conference on Economic Management and Model Engineering, ICEMME 2023, November 17--19, 2023, Beijing, China},
        publisher={EAI},
        proceedings_a={ICEMME},
        year={2024},
        month={2},
        keywords={legitimate expectations fair and equitable treatment restrictive interpretation},
        doi={10.4108/eai.17-11-2023.2342659}
    }
    
  • Tianshuo Zhang
    Year: 2024
    Restrictive Interpretation of Investors’ Legitimate Expectations in the Fair and Equitable Treatment Clause in International Investment Arbitration
    ICEMME
    EAI
    DOI: 10.4108/eai.17-11-2023.2342659
Tianshuo Zhang1,*
  • 1: University College London
*Contact email: tianshuo.zhang.22@ucl.ac.uk

Abstract

This article draws on the latest enumerative treaty reform practices of the European Union regarding clauses on fair and equitable treatment, providing a restrictive interpretation of investors' reasonable expectations. It analyzes the constituent elements and exceptional circumstances, aiming to curtail the expansive interpretation by arbitration tribunals. This is done to balance investor rights and host state regulatory sovereignty. Lastly, in response to the latest developments concerning investors' reasonable expectations, the author puts forth effective risk prevention suggestions, considering the distinct perspectives of China as a host country attracting foreign investment and domestic investors engaging in overseas investments.