The claims unfounded as a matter of law" objection was first introduced by the US Model BIT inorder to prevent frivolous claims. Most of recent international investment agreements concluded by the USand the EU, such as СЕТА, have provided for this objection procedure. Existing treaty rules on the objectionare simple. Pac Rim case is the only one so far where the tribunal dealt with the objection. According to theРас Rim decision, the tribunal has almost unlimited discrection under this procedure. In addition to the claimsunfounded as a matter of law" objection, CETА and some other investment agreements have stipulated theclaims manifestly without legal merit" objection simultaneously. But there is a substantial overlap between twoobjections, So that it is unnecessary to provide them in the same agreement. If an agreement does include twoobjections, their relationship should be explicitly clarified. China should carefully deal with this issue in its BITnegotiations.