An Assessment on the Enforcement of the ICSID Arbitral Award in China

Abstract

This article examines the enforcement of the ICSID Awards in China. China is one of the most enthusiastic signatories of Bilateral Investment Treaty that grants mandatory jurisdiction to the ICSID investment arbitration system. It notes that China has failed to enact any specific legislation to comply with the ICSID Convention enforcement obligations, making its compliance with these obligations uncertain. It concludes that the only way that the China could claim to have fulfilled its treaty obligations is to declare that the ICSID Convention and related agreements have a direct effect on its domestic law. The status of treaties within China law, however, remains uncertain and unsettled. For this reason, it is likely that a judicial interpretation from the Supreme People’s Court is necessary to guarantee enforcement of such an award within China. Without such an interpretation, it is highly doubtful that a China court would enforce an ICSID award, despite the ICSID Convention plain requirement that it do so.