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Author	Dr Fan Yang
Organisation/Institution	Tsinghua University School of Law
Country	CHINA
Panel	International Investment Law
Title	Enhancing Legal Rationality in International Investment Arbitration: Lessons from Asia’s Rule of Law
Abstract	The rule of law in Asia offers valuable insights for addressing the legitimacy crisis in international investment arbitration. Judicial restraint, proposed as a mechanism to limit the adjudicative authority of investment tribunals, has faced challenges due to the absence of dynamic legal rationality in international investment law. Unlike domestic courts, which adapt legal frameworks to evolving societal governance needs, investment arbitration lacks the substantive and procedural rationality necessary to reflect social values effectively. Asia’s legal systems demonstrate significant potential for enhancing legal rationality in this context. Formal rationality is often characterized by legislative primacy and judicial cooperation, while substantive rationality is informed by an emphasis on the social dimensions of property rights. These features provide a foundation for refining power distribution and clarifying the substantive content of fundamental rights within international investment arbitration. Incorporating these elements can strengthen the capacity of investment dispute resolution mechanisms to address societal challenges, contributing to a more responsive and inclusive global legal framework.
Biography	Fan Yang earned her Ph.D. in International Law from Tsinghua University in June 2024. She was a visiting scholar at the Lauterpacht Centre for International Law, where she spent six months enhancing her research in international legal frameworks. Fan also holds a Master of Laws (LL.M.) from Georgetown University Law Center. She has gained significant practical experience through an internship at the UNCITRAL Regional Center for Asia and the Pacific, as well as by participating in leading conferences such as the 9th Biennial Conference of the Asian Society of International Law and the 2023 Conference of the Chinese Society of International Law. Fan’s research centers on the intersection of law application and lawmaking in international investment arbitration. She advocates for a modernized adjudicative legitimacy model, drawing comparisons between investment arbitration and judicial review from a functionalist perspective. Her work particularly engages with recent documents from UNCITRAL Working Group III, highlighting the under-recognized judicial characteristics of civil law jurisdictions and the administrative structures prevalent in developing countries. Through her research, Fan aims to offer a critical, interdisciplinary perspective on the future development of investor-state dispute settlement (ISDS).