Investor-State Disputes refer to disputes between the host government and foreign private investors. 

It has the following characteristics: 1) The subjects of the dispute is unequal in legal status. One party to the dispute is the government of a sovereign state, and the other party is a private investor; 2) The subject of the dispute may involve investment contract issues or non-contractual issues; 3) Disputes may apply domestic or international law to settle the dispute; 4) Dispute resolution costs are usually very high.

Based on the complexity of investor-state disputes, the international community has gradually developed complex and diverse settlement mechanisms. 

The international arbitration mechanism is the most common and mature one. 

The Chinese government should be aware of the importance of policy interpretation beforehand and afterwards. 

It can better protect the national interests and enable the early bilateral agreement to solve the new problems better.

Chinese investors should also focus on the important value of subsequent practice as a treaty interpretation tool. 

First, before making investment decisions, Chinese investors should comprehensively investigate the investment environment of the host country, and consider the legal risks of investing there. 

Secondly, when facing international investment arbitration, Chinese investors should use the subsequent practice of treaty interpretation methods to protect their legitimate rights and interests.