Resolving the Tension Between State Sovereignty and Liberalizing Investor-State Disputes : China's Dilemma

China has grown into the largest global destination for foreign investment and the second largest outbound investment state. These developments underscore China's centrality to the expansion and stability of the international economic order, not limited to the economic impact of its inbound and outbound investors.An ensuing question is the extent to which China protects its national interests in resolving investor-state claims through the process known as investor-state dispute settlement (ISDS). This paper explores, firstly, China's past experiences with ISDS, secondly, its methods of addressing these issues, and thirdly, the regulatory directions it might adopt in the future. In doing so, the paper comments on China's historical and current ISDS experience and practice. It evaluates prospective regulatory measures by which it can avoid and resolve ISDS claims