Introduction

The focus of this paper is on the issues that foreign investors have to deal with when they submit a claim to the ICSID against the Chinese government. Since German investors are one of the major foreign investors in China, I will address the dispute resolution mechanism set out in Art.9 of the 2003 China-Germany BIT. Under this BIT, a German investor can either submit the investment dispute to the ICSID or to an ad hoc arbitration tribunal. In the first chapter, I will critically examine the advantages of ICSID arbitration as compared with an ad hoc arbitration. In the ...