Developing International Investment Arbitration in China: From ICSID to Non-ICSID Investment Arbitration

Abstract

In the context of economic globalization, China's investment cooperation with other countries has become increasingly dynamic, accompanied by a rising number of investment disputes involving both governments and investors. As an important means of resolving international investment disputes, investment arbitration plays a key role in safeguarding the rights and interests of investors and guaranteeing the stability of the investment environment. China is not only one of the most important global investment destinations but also a major exporter of capital, making its investment arbitration practices a focal point of global attention. This article examines the development path and specific strategies for advancing China's investment arbitration framework. In practice, investment arbitration is primarily categorized into ICSID and non-ICSID arbitration, with notable differences in jurisdiction, procedure, supervision, and enforcement. This article argues that China should promote the development of non-ICSID arbitration while fully utilizing the existing ICSID investment arbitration mechanism. However, the practice of non-ICSID arbitration in China currently faces challenges, including the uncertainty regarding arbitrability, difficulties in applying interim measures, and an incomplete enforcement mechanism. China should take the revision of the Arbitration Law as an opportunity, strengthen the alignment of international investment arbitration systems, accelerate the establishment of domestic investment arbitration norms, and improve judicial supervision mechanisms.