The massive development of smart city infrastructure strategically drives developing nations to utilize foreign direct investment flows through joint venture contracts. However, the implementation of absolute stabilization clauses systematically freezes the domestic regulatory space. This study specifically aims to analyze the clash of norms between stabilization clauses and the host state's right to regulate mandatory technology transfer. The research employs a normative legal methodology using statutory and conceptual approaches rooted in the Facilitation 2.0 doctrine. The results prove that comprehensive deregulation of technology transfer instruments to increase foreign investment volume inadvertently creates long-term technological dependency for developing nations. Joint venture contracts lacking coercive regulatory protections surrender technology transfer completely to a highly asymmetric freedom of contract regime. Therefore, this research proposes a comprehensive contractual reconstruction model by inserting explicit public policy carve-outs. This legal reengineering is essential to balance commercial certainty with national digital sovereignty for sustainable smart urban governance.
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