Bilateral investment treaty (BIT) programs were a natural response of capital-exporting countries in trying to protect the investments made by their nationals and corporations in the territories of developing states. In recent decades the role of BITs has risen in global economy for promoting foreign investments by guaranteeing that the rights of foreign investors are protected in the territory of the host state. Most-Favoured-Nation (MFN) treatment is a commonly found treatment standard in investment treaties which guarantees equality of competitive conditions among foreign investors in a host country. The underlying notion behind the MFN clause is to eliminate the de facto and de jure discrimination based on the origin of foreign investment. This paper discusses the role of MFN clause in international investment law with a specific focus to Chinese BITs. Particularly, the paper examines the wording of MFN clauses in Chinese BITs, the stages of investments covered by the clause and its applicability to substantive and procedural treatment standards.
Keywords: Bilateral Investment Treaties, China, Most-Favoured-Nation Treatment
