Kazakh parliament ratifies investment protection agreement with China
ASTANA. May 14 (Interfax) - The Senate, the upper house of Kazakhstan's parliament, on Thursday approved a law ratifying an investment protection agreement with China.
The law, previously passed by the lower house, the Majilis, now goes to the president for signature.
The agreement was signed in Astana on June 16, 2025. Its aim is to create and maintain favorable conditions for investment activity, stimulate the flow of foreign direct investment and improve the economic well-being of both countries.
"Ratification will formally update the 1992 treaty and bring the international legal framework in line with modern global standards," Senator Sergey Yershov said.
The document guarantees both national treatment and most-favored-nation treatment, which legally bars discrimination and puts Kazakh and Chinese investors on equal footing in both countries.
"Of particular note is the legal codification of property inviolability guarantees for both investors and the state. The agreement strictly regulates the lawful expropriation of assets solely in the public interest and only upon payment of commensurate compensation. It also establishes the protected status of national bank assets and defines a clear procedure for dispute resolution in international arbitration institutions," Yershov said.
The law defines key concepts, including the terms "investment" and "covered investment." Covered investments are defined as investments of one party in the territory of the other party that exist on the date the agreement enters into force, or that are admitted by that party in accordance with its legislation, and that possess characteristics such as the commitment of capital and other assets, expectation of gain or profit, and the assumption of risk.
Investments are defined as all assets directly or indirectly owned and controlled by an investor.
Under the agreement, each party must treat investors and covered investments from the other side no less favorably than it treats its own investors in like circumstances. It also guarantees fair and equitable treatment, full protection and security, and non-discriminatory treatment in cases of losses from armed conflict or civil unrest.
The agreement outlines dispute resolution mechanisms for both investor-state and inter-state conflicts, starting with consultations. If consultations fail, investors may file claims with an arbitration panel.
