The Evolution of Host Country Regulatory Authority from an International Investment Perspective

With the advancement of economic globalization, the regulatory authority of host states, as a pivotal component of international investment law, has garnered significant attention and represents a common challenge faced by nations in international investment. This paper focuses on the evolution of host state regulatory authority within the framework of international investment law, elucidating its origins, the gradual decline of traditional regulatory powers and associated issues, as well as the recent trend and challenges of the resurgence of host state regulatory authority exemplified by agreements such as RCEP. The research reveals that while contemporary host state regulatory authority has been somewhat reinforced, it still grapples with issues such as ambiguous provisions, inadequate investment arbitration mechanisms, and an excessive trend towards strengthening regulatory powers. It is imperative to address these concerns by centering on the balance of interests between host states and investors, refining and clarifying substantive rules, and establishing a fair and transparent procedural system. This approach will ensure that host state regulatory authority effectively and reasonably safeguards both investors and host states, thereby fostering the sound and sustainable development of international investment.