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19 AsJCL 1 (2024)

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Asian Journal of Comparative Law (2024), 19, 1-21                ASIAN                      CM1 B   R I DGE
doi:10.1017/asjcl.2024.1                                         COMPARATIVE LAW             I    R  I  IE










Mark   McLaughlin

Singapore Management  University, Singapore, Singapore
Email: mmclaughlin@smu.edu.sg

(Received 7 February 2022; revised 8 August 2022; accepted 20 March 2023; first published online 22 February 2024)


  Abstract
  This article argues that China's loreign investor complaints system constitutes 'state-centric investment medi-
  ation'. The Riles on  Handling  Complaints oforeign-Invested  Elterprises, which entered into force on 1
  October  2020, place a state agency in the position of facilitating negotiations between a foreign investor
  and  the agency being  complained  against. The prospects fo>r this complaints system depend on how  the
  state-as-mediator dynamic  is perceived by loreign investors. To this end, it will be argued that settlement
  agreements   reached pursuant  to this system  may  be  enforceable under  the Singapore  Convention  on
  Medialion  in certain circumstances. Investors and government entities operating similar systems worldwide
  should  be cognisant of the broad drafting terminology of the Singapore Convention. Moreover, it is proposed
  that lurither clarilication of the procedural rules and the inclusion of China's loreign-related dispute reso-
  lution institutions may enhance investor confidence and encourage  use of the complaints system.






In assigning  responsibility for internationally  wrongful  acts, public international  law recognises  only
the state.' This fictional state is comprised   of several state organs  or individuals  exercising govern-
mental  authority, from  local administrators   to supreme  court  judges.2 Every  such entity can  trigger a
breach  of an  international  treaty, as their behaviour  is the state's behaviour.  And   for all such dis-
putes, the  dominant   dispute  resolution  process  has been   investor-state arbitration.
   In specific contexts, however,  this abstraction may  obscure  a more  complex   factual and legal reality.
The  shifting sands of investor-state dispute settlement  (ISDS), for example, reflect an increasing accept-
ance  that the fictional unitary state obscures the potential for settlement. In practice, states and disputes
are more  nuanced.  Recent  reforms  to the legal frameworks  of ISDS  are attuned to this reality, and reori-
ent norms   and  institutions towards  managing   disputes  with foreign  investors. No more   so is this the


   *Global Visiting Assistant Professor, Singapore International Dispute Resolution Academy (SIDRA), Singapore
Management  University.
   The author acknowledges and is grateful for the support of SIDRA's Belt and Road Initiative programme in the develop-
ment of this article.
   'International Law Commission, Draft Articles on the Responsibility of States for Internationally Wrongful Acts with
Commentaries, Supplement No  10, ch IV.E.1, UN Doc A/56/10 (Nov 2001) (hereinafter 'ARSIWA').
   2ARSIWA, art 4 provides that '[t]he conduct of any State organ shall be considered an act of that State under international
law, whether the organ exercises legislative, executive, judicial or any other functions, whatever position it holds in the organ-
ization of the State, and whatever its character as an organ of the central Government or of a territorial unit of the State'.
   *The original version of this article was published with preliminary versions of Figures 1 and 2. A notice detailing this has
been published and the errors rectified in the online and print PDF and HTML copies.
© The Author(s), 2024. Published by Cambridge University Press on behalf of the National University of Singapore. This is an Open Access
article, distributed under the terms of the Creative Commons Attribution licence (https://creativecommons.org/licenses/by/4.0/), which per-
mits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.