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.
Date of Authorship for this Version
Wang, Tingliang, "Western Misperceptions and China's Approach to International Investment Law" (2018). New York University Law and Economics Working Papers. 461.