CONTEMPORARY EURASIA VIII (2) ContEurVIII2 | Page 19

SAREN ABGARYAN which is a high threshold and uncharacteristic of ISDS clauses in the 21st century. Legal Urgency of a New BIT Between Armenia and China The Armenia–China investment treaty follows the old model (first generation) of Chinese BITs where the countries adopted a protectionist and restrictive model of the treaty. This restrictiveness is well reflected in the fact that the BIT does not have a national treatment clause or umbrella clause. Additionally, the MFN, FET, and FPS clauses provide vague and outdated wording that can potentially be misinterpreted by investment tribunals. Most importantly, the ISDS clause provides the possibility for investors to bring claims against states only concerning the amount of compensation from expropriation. Those are considerable limitations and leave many aspects of investor rights protection uncovered by the agreement. It is a well-justified objective for Armenia and China to formulate a new BIT that will be aimed at considerably updating the protective framework of investments, potentially becoming a stepping-stone for China to increase outward foreign investments to Armenia. This potential renegotiation of BITs needs to also beconsidered in the context of the Chinese BRI, which encourages the participation of state and private investors in long-term infrastructure deals and projects. Thus, additional assurances on the protection of foreign investors rights and assets can give comfort to private investors. Armenia, being at the crossroads of Chinese initiatives, has an opportunity to be a link between Asian, Middle Eastern, and European markets thanks to its geographical location. Chinese rise in the global economic order, its increasing outward foreign investment, and BRI create a mutually beneficial relationship between the states that needs to be leveraged to provide a higher standard of treatment for foreign investors. This will additionally reinforce the party’s relationship and will encourage Chinese investments in Armenia under the conditions of investor rights protection in accordance with the modern developments of investment treaties. Additionally, Armenia’s recent accession to the Eurasian Economic Union and deepening trade relationship with Europe provide Chinese investors with a window to invest, produce goods and services in Armenia, and freely market them in both CIS and EU markets. 19