By Taha Bekhtiar
BITs are windows into state policy. When Russia and China update their investment treaty, they reveal how two major economies are reconsidering the balance between investor protection and regulatory powers.
The 2025 Russia-China BIT marks a clear departure from the 2006 agreement, reflecting evolving state priorities in foreign investment protection and two decades of geopolitical change.
One of the most striking amendments appear in the dispute resolution clause, which now runs to 19 paragraphs, roughly seven times longer than the 2006 version.
Gone:
➡️ICSID is no longer a stipulated option in the BIT
➡️Disputes over transparency requirements, administrative procedures, and authorization processes are no longer within the scope of the BIT’s dispute settlement mechanism
Added:
➡️A formal request for mandatory consultations with a 180-day cooling-off period and a three-year window to lodge arbitration
➡️UNCITRAL ad hoc arbitration as the default option, and institutional arbitration available only if both parties agree
What it means:
By narrowing the scope of arbitrable claims and removing automatic access to ICSID, Russia and China are not turning away from arbitration, they are reshaping it, seeking greater control over the process.
This approach aligns with broader trends in investment arbitration:
➡️UNCITRAL Working Group III has been actively discussing ways to balance state regulatory powers with investor protection
➡️In the same vein, new-generation BITs balance investor protection with regulatory autonomy, taking into account the need for sustainable economic growth and states’ right to regulate.
Compared to Honduras and Ecuador which are rejoining ICSID, Russia and China are taking a different approach: seeking to limit exposure to ICSID’s enforcement regime and favouring negotiation over adjudication.
These contrasting trends come as no surprise. The world of 2026 faces a more fragmented international order. In the current geopolitical turmoil, arbitration is all the more vital to ensure that cross-border investments remain secure despite global uncertainty.
Republished with the permission of the author. Original post available here.