Study Of Legal Issues Of The Bilateral Investment Agreement Between Mongolia And China

Bilateral investment treaties (BITs) constitute to date the most important instrument for the international protection of foreign investment. Currently, all countries want through national and international policies to promote and protect foreign investment and to attract investor interest. Many countries have reduced the bans on foreign direct investment to improve the treatment of foreign investors and protection standards, and to relax or abolish restrictions on their actions. Mongolia is not exception. Since economic liberalization in the early 90s, in order to attract foreign investment the Government of Mongolia has taken various measures to create legal environment conducive to foreign direct investment (FDI) and started to sign Mongolian bilateral investment agreements with foreign countries. In addition, the investment climate of Mongolia has been analyzed in the World Bank and United Nations Conference on Trade and Development. However, there is no any foreign and domestic research on Mongolian BITs with foreign countries. The thesis provides an overview and analysis legal issues of the BIT between Mongolia and China, explore ways to strengthen BIT between the two countries.The first part briefly summarizes the overview of international investment law. Mainly the understamding of the international investment law and its basic principles, the concept of bilateral investment treaties, its type and role.The second part introduce with the foreign investment law of Mongolia, its foreign policy. Touching upon the entry conditions of foreign investment, its type and forms, as well as investment environment and current investment encouragement policy, and foreign investment legal protection measures.The third part regarding "The Agreement between Government of the Mongolian People's Republic and the Government of the People's Republic of China Concerning the Encouragement and Reciprocal Protection of Investments". Review beginning of bilateral treaties between Mongolia and China, and development of Mongolian bilateral investments with foreign countries. As well as, view background BIT between Mongolia and China, and discuss the main content of the agreemnt and its features, specially definition of terms, investment treatment provision, compensations for expropriation or nationalization, transfers clause, subrogation and dispute settlement provisions. The fourth part mainly analyzing and evaluating BIT between Mongolia and China. The author considers that the BIT between two countries has number of shortcomings to be improved. For example, in the existing agreement definition of "investor" is more general and limited. Besides, there are questions on investment treatment, investment guarantees and investment promotion provision.The fifth part mainly discussing countermeasures for improvement of the BIT between Mongolia and China. For example, the present agreement need to increase investment treatment and improve investment promotion provisions, increase investment guarantees and improve the BIT implementation mechanisms.We should note that in the general trend of economic globalization and regionalization, investment relations between the Mongolia and China two countries continue to expand. Therefore, improve the existing BIT between Mongolia and China will play a constructive role.