Agreement between Kazakhstan and China on the Promotion and Mutual Protection of Investments: Legal Analysis
The Agreement between the Republic of Kazakhstan and the People’s Republic of China on the Promotion and Mutual Protection of Investments is an important international legal instrument governing investment cooperation between the two states. The document is aimed at establishing stable and predictable conditions for foreign investors, as well as reducing legal and commercial risks in investment activities.
The new agreement was signed in Astana on 16 June 2025 and is intended to update the treaty framework on investment cooperation between Kazakhstan and China that had been in force since 1992.
The main objective of the agreement is to create a favorable investment regime for individuals and legal entities of both countries. Under the agreement, the parties undertake to ensure fair and equitable treatment of investments and to provide legal protection to investors in accordance with international law standards.
One of the key provisions of the agreement is the establishment of national treatment and most-favored-nation treatment. This means that investors from one party must not be placed in a less favorable position than national investors of the host state, nor than investors from third countries.
Of particular importance are the guarantees against expropriation. The agreement provides that the expropriation or nationalization of investments is permitted only in the public interest, on a non-discriminatory basis, and subject to prompt, adequate, and effective compensation. This provision corresponds to generally recognized international standards for investment protection and serves as an important guarantee of investment stability.
| The document also enshrines investors’ right to the free transfer of payments related to investments, including profits, dividends, interest, and other income. This contributes to the free movement of capital and reduces currency risks for foreign companies. |
Special attention should be given to the investor–state dispute settlement mechanism. The agreement provides for the possibility of submitting disputes between an investor and a state to international arbitration, including arbitration under the rules of the International Centre for Settlement of Investment Disputes (ICSID) or ad hoc arbitration. The existence of an arbitration clause significantly enhances the level of legal protection for foreign investors and aligns with modern international investment practice.
The practical significance of the agreement is reflected in the active participation of Chinese capital in infrastructure, energy, and industrial projects in Kazakhstan. The legal guarantees established by the agreement facilitate the implementation of joint projects under the Belt and Road Initiative, the development of transport and logistics infrastructure, and the attraction of investment into strategic sectors of the economy.
At the same time, the expansion of investment cooperation requires further improvement of national legislation, increased transparency of investment procedures, and maintaining a balance between the protection of foreign investors and the safeguarding of state economic sovereignty.
Thus, the Agreement between Kazakhstan and China on the Promotion and Mutual Protection of Investments serves as an important element of bilateral economic cooperation and forms the legal basis for a long-term investment partnership between the two states.
| If your company is considering the implementation of investment projects in Kazakhstan or China, the REVERA team is ready to support and advise you on all related matters. |
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