The Essential Security Exception under International Investment Law - Analysis of the Dispute between Huawei and the Swedish Government as a Case Study

Abstract: Along with the rapid development of investment and trade in the context of economic globalisation, a number of legal issues, risks and disputes related to the essential security exception have gradually emerged in the field of international investment. Although contracting states have consciously agreed on essential security exception regulations in the international investment system, the provisions of essential security exception regulations in investment agreements vary from country to country, and there are differences in the interpretation and application of the exception provisions by arbitral tribunals. Essential security interests are also the core issue of the current dispute between the Swedish government and Huawei. The study of the essential security exception therefore has both symbolic and practical significance. This article explores the jurisprudential features of the essential security exception as well as its application and interpretation in legal practice, and uses the dispute between Huawei and the Swedish government as a case study, which analyses the decision of the Administrative Court, finds the issues at stake and demonstrates the possible direction of the case . On this basis some improvements are suggested on the principle of the essential security exception.