Lump sum agreements have been widely and frequently employed in the practice of internation-al claims arising out of expropriation and nationalization on a large scale of property of aliens. The com-monprovisions lieinthis typeofclaims agreement providingpaymentbyrespondentstateof afixedsumof compensation to claimant state，eligibility of claimants，compensable claims，sole responsibility on the claimant state to distribute the compensation funds，waiver by claimant statetobringanyfurther claima-gainstrespondentstate，etc. Afterwards，thestateauthorityoftheclaimantstatewillbeinchargeofadju-dicatingclaimsbroughtbyitsnationals. Addressed here are some legal aspectsoftheabove-mentioned statepractices，includingclaims byandagainst China bothas claimantstateandrespondentstate respec-tively. With the increasing scal eofdirectinves tment in and from China，suchdisputesettlementmethod mightbe of help in protecting China's national interests，including overseas interests.