Shearman And Sterling

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May 24, 2007

Investment in China and its Legal Protection


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China is of considerable relevance particularly for the German economy. The People’s Republic is Germany’s most important Asian commercial partner and, vice versa, Germany is China’s most important commercial partner in Europe. In view of these tight economic connections, the legal protection of foreign investment and its enforcement has a considerable practical relevance of which German investors are still not sufficiently aware.  With the new German-Chinese bilateral investment treaty (BIT), China has significantly improved German investors’ legal protection.  Dr. Richard H. Kreindler and Dr. Jochem Reichert discuss in detail how this BIT has improved the investor’s status by strengthening the investor's substantive legal position and, most notably, by facilitating its procedural enforceability. The newsletter is currently available in German and is aimed primarily at the German investor.

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