Analysis on the Standards of Indirect Expropriation in International Investment

Being the core issue of international investment, the standards are confirmed to distinguish indirect expropriation from general regulatory measures implemented by the host country. However, the standards have not been regulated definitely by International Investment Treaties. In the name of general regulatory measures, some of the host countries refuse to compensate for foreign investors by indirect expropriation. This paper first summarizes the standards of indirect expropriation, and then makes a deeply analysis on them, after which comes up with the assumption that the standards of indirect expropriation should take the standard of Effect and Purpose Test into account.