A “Silk Road” for Capital: Trade Policy and Foreign Investment Laws of China’s Neighbors

Zachary Strom | January 1, 2018

This article presents a comparative study of the foreign investment laws and treaties of two of China’s neighbors, Pakistan and Mongolia. As China moves forward in implementing a “One Belt, One Road” policy of major investments in trans-national infrastructure projects, leaders of neighboring countries including the two discussed here have demonstrated eagerness for its plans. The laws governing foreign trade and investment in each jurisdiction may be crucial to the success of Chinese investment efforts. The article discusses the evolution of both Pakistan’s and Mongolia’s laws and policies–Pakistan, as an enthusiastic partner and linchpin in China’s “Belt,” and Mongolia, as a resource economy that has, at times, struggled to draw the line on overwhelming Chinese influence. When examined, the laws and treaties of each nation show both reflections of and reactions to China’s grand ambitions.