Overseas Investment Co. (OIC), a multinational enterprise with its headquarters in State W, entered into a joint venture with Investment Promotions Facility, Ltd. (IPF), a state-owned company whose board of directors and principal officers had been appointed by the minister of finance of State X. The joint venture agreement provided that, in the event of any dispute, the dispute would be resolved by arbitration. Additionally, because the law of State X says that all foreign investment agreements must be approved by the minister of finance, the minister was present at the signing of the agreement; and after representatives of the two parties put their signatures on the document, the foreign minister added the words “approved and ratified” and his own signature.

Unfortunately, a dispute did arise, and OIC initiated an arbitration proceeding according to the procedures set out in the joint venture agreement, naming both IPF and State X as parties. State X responded by arguing that the arbitration tribunal has no jurisdiction over it. Should State X be excused from participating in the suit? Discuss.