Dispute Resolution Mechanisms and Organizations in the Implementation of 'One Belt, One Road' Initiative : Whence and Whither

The existing dispute settlement mechanisms in the treaties concluded by China and under Chinese domestic law are insufficient to resolve all disputes related to the “One Belt, One Road” Initiative. It is critically important for China to design dispute settlement mechanisms and organizations to facilitate the OBOR Initiative. This paper suggests, for trade disputes, the first choice should be to refer the disputes between WTO members to the Dispute Settlement Body. The regional trade regimes may function as supplements. Investment disputes may be submitted to investor-state dispute resolution mechanisms including the ICSID under BITs. In the case of financial disputes, the newly established Asian Infrastructure Investment Bank may provide a platform for its members to settle their disputes. As for those countries which have neither acceded to the WTO nor joined other regional trade regimes, nor signed any FTAs or BITs with China, China may settle the disputes with them through government agreements like protocols, or refer the disputes either to domestic judicial bodies or to arbitration. The purpose for this is to ensure that dispute settlement under the OBOR Initiative will be more economical, efficient and enforceable