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International legal framework of economic cooperation
between the Republic of Uzbekistan and the People's
Republic of China
Hong WEIXING
1
University of World Economy and Diplomacy
ARTICLE INFO
ABSTRACT
Article history:
Received March 2025
Received in revised form
15 April 2025
Accepted 25 April 2025
Available online
25 May 2025
This study examines the evolving international legal
architecture governing economic relations between Uzbekistan
and China, with particular focus on developments following
China's Belt and Road Initiative (BRI). The research identifies
strengths and risks in the current regulatory environment
through a comprehensive analysis of bilateral agreements,
multilateral frameworks, and domestic legal reforms. The
findings reveal a gradually maturing legal ecosystem
characterized by overlapping bilateral treaties, regional
cooperation mechanisms, and international investment
protections. The article concludes with recommendations for
enhanced legal harmonization in dispute resolution procedures,
environmental s00000tandards, and institutional collaboration
to ensure sustainable economic partnership.
2181-
1415/©
2025 in Science LLC.
https://doi.org/10.47689/2181-1415-vol6-iss4/S-pp453-459
This is an open access article under the Attribution 4.0 International
(CC BY 4.0) license (https://creativecommons.org/licenses/by/4.0/deed.ru)
Keywords:
Uzbekistan,
China,
economic cooperation,
international law,
Belt and Road Initiative,
bilateral treaties,
international investment,
legal harmonization.
O‘zbekiston
Respublikasi va Xitoy Xalq Respublikasi
o‘rtasidagi iqtisodiy hamkorlikning xalqaro huquqiy
asoslari
ANNOTATSIYA
Kalit so‘zlar
:
O‘zbekiston,
Xitoy,
iqtisodiy hamkorlik,
xalqaro huquq,
“
Bir kamar
–
bir yo‘l”
tashabbusi,
ikki tomonlama
Mazkur ilmiy maqolada O‘zbekiston Respublikasi va Xitoy
Xalq Respublikasi o‘rtasidagi iqtisodiy munosabatlarni tartibga
soluvchi xalqaro huquqiy me’yorlar tizimining evolyutsiyasi,
xususan, Xitoy tomonidan ilgari surilgan “Bir makon –
bir yo‘l”
tashabbusi doirasidagi rivojlanishlar tahlil qilinadi. Tadqiqot
doirasida ikki tomonlama bitimlar, ko‘p tomonlama huquqiy
1
Independent researcher (PhD), University of World Economy and Diplomacy. E-mail: victor_china@126.com
Жамият
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Special Issue
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454
shartnomalar,
xalqaro investitsiyalar,
huquqiy uyg‘unlashtirish
.
mexanizmlar hamda milliy qonunchilikdagi institutsional va
normativ islohotlar kompleks yondashuv asosida o‘rganiladi.
O‘tkazilgan tahlillar amal
dagi huquqiy tartibga solish tizimi
murakkab, biroq bosqichma-bosqich takomillashayotgan
huquqiy muhitni namoyon etadi. Bunda ikki tomonlama
shartnomalar, mintaqaviy hamkorlik mexanizmlari va xalqaro
investitsiyalarni huquqiy himoya qilish normalari o‘zaro
integratsiyalashgan. Xulosa qismida esa huquqiy muvofiqlikni
ta'minlash, ayniqsa, nizolarni hal etish mexanizmlarini
takomillashtirish, ekologik standartlarni uyg‘unlashtirish hamda
institutsional hamkorlikni kuchaytirishga qaratilgan taklif va
tavsiyalar
bayon etiladi. Ushbu tavsiyalar o‘zaro manfaatli va
barqaror iqtisodiy sheriklikni ta’minlashga qaratilgan.
Международно
-
правовые
основы
экономического
сотрудничества между Республикой Узбекистан и
Китайской Народной Республикой
АННОТАЦИЯ
Ключевые слова:
Узбекистан,
Китай,
экономическое
сотрудничество,
международное право,
инициатива «Один пояс –
один путь»,
двусторонние договоры,
международные
инвестиции,
правовая гармонизация.
В данной научной статье исследуется эволюция
международно
-
правовой
нормативной
базы,
регулирующей
экономические
отношения
между
Республикой
Узбекистан
и
Китайской
Народной
Республикой, с особым акцентом на развитие после
выдвижения инициативы КНР «Один пояс –
один путь».
В рамках исследования проводится комплексный анализ
двусторонних соглашений, многосторонних правовых
механизмов, а также институциональных и нормативных
реформ в национальном законодательстве. Результаты
анализа свидетельствуют о формировании сложной, но
постепенно совершенствующейся правовой среды, в
которой
двусторонние
договоры,
механизмы
регионального сотрудничества и нормы международной
правовой защиты инвестиций интегрированы между
собой. В заключительной части статьи изложены
предложения
и
рекомендации,
направленные
на
обеспечение правовой гармонизации, в частности,
совершенствование
процедур
разрешения
споров,
унификацию экологических стандартов и укрепление
институционального взаимодействия. Указанные меры
ориентированы на достижение взаимовыгодного и
устойчивого экономического партнёрства.
INTRODUCTION
The intensification of global economic interdependence has necessitated
increasingly sophisticated legal frameworks to regulate cross-border cooperation.
For Uzbekistan, China's emergence as an economic powerhouse and the architect of the
ambitious Belt and Road Initiative (BRI) presents unprecedented opportunities for
development and regional integration. However, transforming these opportunities into
sustainable benefits requires enhanced legal foundations.
Жамият
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Общество
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Society and innovations
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This paper investigates the normative structures underpinning Uzbek-Chinese
economic relations, with particular attention to legal mechanisms facilitating investment,
trade, and infrastructure development. By examining both formal treaties and informal
cooperation agreements, the research aims to provide a comprehensive overview of the
legal landscape while identifying areas for potential improvement.
METHODOLOGY
The article was written based on sources such as periodical press materials,
Internet resources, bilateral treaties, protocols, memoranda of understanding, and
national legislation of both countries relevant to economic cooperation.
Document analysis was conducted through systematic review of treaty provisions,
implementation mechanisms, and enforcement procedures. Particular attention was paid
to identifying convergences and divergences in legal approaches between the two legal
systems, as well as alignment with international standards.
RESULTS
Bilateral Legal Framework
The legal architecture governing Uzbek-Chinese economic cooperation has
developed progressively since diplomatic relations were established in 1992. Bilateral
agreements form the core of this framework, providing legal certainty for economic
actors from both nations. Key documents include:
•
Agreement on Trade and Economic Cooperation (1992
•
Agreement on Avoidance of Double Taxation and Prevention of Fiscal Evasion
(1996)
•
Treaty of Friendship and Cooperation (2005, renewed 2016)
•
Agreement on the Promotion and Protection of Investments in 2011
•
Memorandum of Understanding on Belt and Road Cooperation (2015)
•
Medium-Term Plan on Trade and Investment Cooperation (2022-2026)
On March 13, 1992, the signing of the "Agreement on Promotion and Protection of
Investments between the Governments of the Republic of Uzbekistan and the People's
Republic of China" between the Government of the Republic of Uzbekistan and the
Government of the People's Republic of China was of particular importance. It is
considered an event because this transaction was one of the events that started the entry
of foreign investments into Uzbekistan. [O. Kodirjonov, 2024]
Of particular significance is the 2011 investment agreement, which expanded
investor protections beyond previous arrangements by including detailed provisions on
compensation standards and introducing investor-state dispute settlement mechanisms.
[UNCTAD]
This agreement formed the legal foundation for subsequent Chinese infrastructure
investments, particularly in Uzbekistan's energy and transportation sectors.
Above mentioned agreements establish substantive protections for investors,
including national treatment provisions, fair and equitable treatment standards, and
protection against expropriation without compensation. They also create procedural
mechanisms for dispute resolution, including recognition of international arbitration
awards.
Multilateral and Regional Mechanisms
Bilateral relations are complemented by several multilateral frameworks that
extend legal protections and facilitate regional integration:
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1.
Shanghai Cooperation Organization (SCO): Both countries are founding
members of the SCO, which provides institutional architecture for economic cooperation
through agreements on trade facilitation, customs procedures, and transportation
coordination.
The SCO legal framework includes 122 documents related to the economy. These
facilitate interaction between the parties on trade, banking, financial and investment
activities, manufacturing, agriculture, transport, telecommunications, customs, and the
development of tourism [R. Alimov, 2018].
2.
UN Economic and Social Commission for Asia and the Pacific (UNESCAP):
Regional frameworks established under UNESCAP auspices guide cooperation in digital
trade, logistics harmonization, and sustainable development standards.
3.
Asian Infrastructure Investment Bank (AIIB): As a founding member, Uzbekistan
benefits from AIIB's governance standards and environmental safeguards in
infrastructure financing, particularly for BRI projects
4.
World Trade Organization (WTO): With Uzbekistan's observer status and
ongoing accession process, WTO principles increasingly influence bilateral trade
relations, particularly regarding market access and non-discrimination.
These multilateral mechanisms introduce common standards that supplement
bilateral obligations, creating a more comprehensive legal environment for contracting
parties.
Domestic Legal Reforms in Uzbekistan
Uzbekistan has implemented significant legal reforms to facilitate foreign
investment, particularly from BRI partners. The Law on Investments and Investment
Activity (2019) represents a watershed development, establishing comprehensive
protections for foreign investors, including:
•
National treatment provisions
•
Guarantee against adverse regulatory changes
•
Freedom to repatriate profits
•
Access to international arbitration
•
Tax privileges for priority sectors [
ЗРУ
-598-
сон
25.12.2019.
Об инвестициях и
инвестиционной деятельности]
These domestic reforms complement international obligations and demonstrate
Uzbekistan's commitment to creating an investor-friendly legal environment. According
to World Bank analysis, these reforms have substantially improved Uzbekistan's
investment climate, particularly in sectors prioritized for Chinese investment [World
Bank, 2022].
DISCUSSION
The legal framework governing Uzbek-Chinese economic relations has evolved
into a multi-layered system characterized by overlapping bilateral and multilateral
instruments. This analysis reveals both achievements and challenges in the current legal
architecture.
Strengths of the Current Framework
The existing legal structure provides reasonably comprehensive coverage of
traditional investment protection concerns, with particular strength in areas of:
1.
Investment Security: Both countries have established robust protections against
expropriation and discriminatory treatment.
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2.
Dispute Resolution: Multiple avenues exist for addressing commercial disputes,
including recognition of international arbitration.
3.
Sectoral Coverage: Supplementary protocols have expanded cooperation into
energy, agriculture, and digital infrastructure.
The BRI has catalyzed legal innovation, transforming from a policy initiative into a
de facto regulatory framework through detailed implementation agreements,
standardized financing contracts, and institutionalized cooperation mechanisms. This
evolution represents a significant development in international economic law, blending
formal treaty obligations with more flexible cooperation arrangements.
Legal Gaps and Challenges
Despite these achievements, several areas require further legal development:
➢
Environmental Standards: Current agreements contain limited provisions
regarding environmental protection and sustainable development. As infrastructure
projects expand under the BRI, more comprehensive environmental impact assessment
requirements would enhance sustainability.
➢
Labor Mobility: Legal frameworks governing workforce mobility remain
underdeveloped, creating obstacles for joint ventures and technology transfer initiatives.
Simplified visa procedures and mutual recognition of professional qualifications could
strengthen cooperation.
➢
Digital Economy Regulation: Existing legal instruments predate the digital
transformation of both economies. New agreements addressing data protection, e-
commerce, and digital payments would support emerging sectors.
Based on this analysis, several legal innovations could strengthen economic
cooperation:
1.
Joint Legal Commission: Establishing a permanent bilateral legal commission
could improve treaty implementation and address emerging challenges through regular
dialogue.
2.
Harmonized Technical Standards: Developing common technical standards for
infrastructure projects would reduce transaction costs and enhance interoperability.
3.
Model Contracts for BRI Projects: Standardized contractual templates could
streamline project implementation while ensuring adequate protections for both parties.
4.
Environmental Protocol: A dedicated environmental protocol could establish
binding standards for impact assessment and mitigation measures in joint projects.
5.
Dispute Prevention Mechanisms: Early consultation procedures could prevent
escalation of commercial disagreements into formal disputes.
These innovations would address existing gaps while providing flexibility to
accommodate emerging economic sectors and changing geopolitical realities.
CONCLUSION
Our research through the legal landscape of Uzbek-Chinese economic relations
reveals a fascinating blend of traditional international legal instruments intertwined with
innovative cooperation mechanisms born from the Belt and Road Initiative. We have
witnessed, through our careful examination of bilateral treaties, multilateral frameworks,
and domestic reforms, that while remarkable strides have been made in building a solid
legal foundation, rich opportunities remain for further legal development to meet
emerging challenges.
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The current legal framework offers economic participants from both nations a
measure of security through robust investment protections, well-established channels for
resolving disputes, and an expanding embrace of diverse economic sectors. We cannot
overlook Uzbekistan's impressive domestic legal transformation, particularly embodied
in the 2019 Law on Investments and Investment Activity
–
a testament to the nation's
dedication to harmonizing its internal legal structures with global standards that inspire
investor confidence.
Yet, as our economies evolve and our partnership deepens, we face challenges that
call for bold legal innovation. The gaps we've identified in environmental protection
frameworks, labor mobility regulations, and digital economy governance represent
critical areas where our legal imagination has not kept pace with economic realities. The
inherent asymmetry in our economic relationship makes it all the more crucial that our
legal instruments provide balanced protections serving the long-term development
interests of both our nations while honoring our respective sovereignty.
Looking ahead, we must envision legal developments that prioritize quality over
quantity, not merely adding more agreements but enhancing the effectiveness of existing
ones. The Joint Legal Commission we propose, alongside harmonized technical standards,
standardized BRI project contracts, a dedicated environmental protocol, and
preventative dispute resolution mechanisms, would collectively strengthen the legal
foundations of this vital partnership between our nations.
As we navigate together through regional integration challenges and global
economic uncertainties, our legal relationship must transcend conventional investment
protection models toward a more holistic framework addressing contemporary concerns
of sustainability, technological advancement, and social well-being. The maturation of
this legal architecture will ultimately determine whether the promise of our cooperation
translates into lasting benefits for the citizens of both our societies.
This rich legal ecosystem deserves continued scholarly attention, particularly
regarding how formal treaty obligations interact with the more flexible normative
frameworks emerging through BRI implementation. Through thoughtful legal diplomacy
and innovative regulatory approaches, Uzbekistan and China stand poised to create a
model for cross-border economic cooperation that balances robust investment
protection with broader sustainable development imperatives that can inspire similar
partnerships worldwide.
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