CWR > Volume 3(1); 2017 > Current Developments
Research Paper
Published online: March 1, 2017
DOI: http://dx.doi.org/10.14330/cwr.2017.3.1.06
Indirect Expropriation and One Belt One Road Initiative: A Pivotal Issue for the Implementation of China's Refreshed Strategy for Foreign Investment
Yucong Wang
Kyushu University Law School
14-10-5 Hakozaki, Higashi-ku, Fukuoka 812-0053 JAPAN.
Corresponding Author: yucong.wang.615@gmail.com
ⓒ Copyright YIJUN Institute of International Law. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
China's OBOR Initiative charts a path for trade and investment cooperation between China and States along the OBOR. Indirect expropriation stands as a crucial issue for the successful implementation of the OBOR initiative. This mainly owes to the large size of investment projects and investment funds, scant regulation of indirect expropriation in the IIAs signed between China and OBOR States, and the diverse political and economic environments of these many States. This article examines the definition and identification standards of indirect expropriation under OBOR IIAs. It will also reveal that indirect expropriation is poorly defined and insufficiently identified in most agreements. It is argued that OBOR IIAs should be revised to regulate indirect expropriation in such three aspects as preambular declaration of host State regulatory freedom, definitional clarity of indirect expropriation, and guidance for its identification. This approach would facilitate a more stable investment environment and contribute to the success of the OBOR initiative.
Keywords : Indirect Expropriation, OBOR, IIAs, BITs, Foreign Investment
