We recently wrote about how foreign investors can use investment treaties to protect investments made abroad from political risk[i]. ‘Political risk’ in foreign investment is the risk that an investment will be adversely effected by a host country’s political or regulatory decisions. We now look more closely at how Chinese investors can gain investment treaty protection.
Whilst developed Western countries have historically been the greatest proponents of investment treaties, China has now entered into more investment treaties than any other country besides Germany. One can assume that the Chinese government’s motivation for agreeing to so many treaties is to increase the protections provided to Chinese investors abroad. It also signals a willingness to provide the same protections to investments made in China.
Continue Reading Guide to obtaining investment protection for Chinese investors