Rethinking the china-israel bit in light of the fragmented international investment legal order: A commentary

The practice of International Investment Agreements (IIAs) has developed immensly during the past 15 years. In particular, China has gained significant experience in concluding IIAs, adapting to concerns raised following an overflow of investor state disputes. This article analyzes an interesting case-study: an investment promotion agreement signed and negotiatied between China and Israel (CIBIT) during the 1990s, however ratified more than a decade later, in 2009, without modifying or updating its contents. This commentary identifies major gaps in the CIBIT, including those concerning its preamble, key definitions of ‘Investment’ and ‘Investor’, standard of protection: FET, MFN, NT, and ISDS provisions, vis-à-vis the wider transformation of international investment law. Special emphasis is given to China’s change in approach to investment and IIAs. The growing economic ties between China and Israel, including recent discussions about a free trade agreement, requires a thorough understanding of the risks and benefits of the CIBIT. Therefore, the commentary concludes with an outline of a strategic roadmap for the future revision of the CIBIT.