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Western commentators have many misperceptions on China's approach to international investment law. They divided China's bilateral investment treaties ("BITs") into two generations —conservative and liberal; but actually China has three generations of BITs: the first generations is conservative, the second is liberal, and the third reaches a more balanced approach. They criticized China for not including pre-establishment national treatment in its BITs, not allowing most-favored national clause to extend to procedural issues and not accepting the "Hull Formula" in calculating compensation amount for expropriation. These criticisms are untenable, as what proposed is not well-established and widely-accepted practice in the international community. They also criticized China for not actively participating in investor-State dispute settlement, as they failed to notice China's increasing participation in recent years and China's political considerations, especially when it is related to the ambitious Belt and Road Initiative.

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