An Analysis of Concurrent Proceedings under Chinese BITs

Abstract

On 2 May 2017, Hela Schwarz GmbH, a German manufacturer of compound spices and food additives (Hela), filed a Request for Arbitration against China with the International Centre for Settlement of Investment Disputes (ICSID), alleging expropriation of its investment.123 Hela’s local subsidiary in China, Ji’nan Hela Schwarz Food Co Ltd (JHSF), had initiated proceedings in Chinese courts before the arbitration claim was filed with ICSID. Hela’s ICSID claim raises the issue of whether a foreign investor may concurrently initiate proceedings before an ICSID tribunal and domestic courts. Such concurrent proceedings not only raise concerns about treaty party expectations but also undermine the predictability of dispute resolution. Given the small number of international investment arbitration cases involving China and its bilateral investment treaties (BITs), the issue of concurrent proceedings in Chinese BIT law and practice is underinvestigated.4 Therefore, Hela’s ICSID arbitration case offers a welcome opportunity...