Abstract:
The era of globalization is accompanied by trans-border investment activities. These
activities are partly regulated by bilateral and multi-lateral investment agreements
signed between different State entities. One of the pertinent issues raised in the crossborder investment is the management of expropriation of properties. Countries
cannot ignore the problem of expropriation in cross-border investment transactions.
The purpose of taking property clauses in treaties is to protect foreign investors by
establishing standards for the manner in which host States might take or otherwise
interfere their property rights. Meaning, it limits the right of States to take property
by imposing certain requirements. The governments of the Federal Democratic
Republic of Ethiopia and the People’s Republic of China have signed a bilateral
investment treaty (BIT) for the encouragement and reciprocal protection of
investments between the two countries. The aim of this paper is to examine the
expropriation of investment clause and its practice, and the requirements available
during an act of expropriation or nationalization in accordance with the BIT existing
between the two countries.
Keywords: BIT, Ethio-China, expropriation, investment, lawful, requirements.
