Recognition and Enforcement of International Investment Arbitral Awards in the People's Republic of China : the legal obstacles and problems under the ICSID Convention and the New York Convention

Abstract: The enforcement mechanism of international investment arbitral awards is an es- sential safeguard for resolving investment disputes. Under the existing machinery, the ICSID Convention and the New York Convention provide an effective legal framework for the enforcement of international arbitral awards. Many countries have provided a favorable domestic statutory regime for investor-state arbitral awards enforcement.  With China's accession to the ICSID Convention and the signing of bilateral and multilateral investment treaties with many countries, China has become more open and active in international investment in recent years. At the same time, some legal risks in settling investment disputes have emerged. For instance, one of the most significant issues is whether investor-state arbitral awards can be ef- fectively enforced in the PRC.  Though the New York Convention was primarily designed to enforce commercial arbitral awards, it is widely accepted that it also permits the enforcement of awards against sovereign states. However, it is risky for overseas investors resort- ing enforcement in the PRC based on the New York Convention since China left the commercial reservation clause when acceding to the New York Convention.  Thus, the ICSID Convention is more beneficial for foreign investors when entering into contracts with the PRC. However, the execution of ICSID awards is subject to the domestic law of the enforcement forum, but China does not provide specific domestic legislation that complies with the ICSID Convention. Therefore, some legal obstacles should be carefully considered during the enforcement phase, such as sovereign immunity and public policy.  This thesis focuses on the enforcement regime of investor-state arbitral awards under the ICSID Convention and the New York Convention. It also predicts the legal risks of enforcing investor-state arbitral awards in the PRC, thus putting 2 forward suggestions for overseas investors and for improving the Chinese arbitra- tion legal system.