Earlier this month, I travelled to China to deepen existing relationships and deliver a presentation on the Legal and Business Framework for Foreign Investment into Central Asia. My presentation focused on how AIFC (Astana International Financial Centre), a widely recognised financial institution and a hub for finance and capital investment in the Central Asia and Eastern European regions, can provide support for structuring new investments, redomiciling existing businesses as well as amicably resolving disputes through the AIFC Court and IAC Arbitration.
Many Chinese companies, including China Construction Bank, are already registered at the AIFC. Over the past six months, the number of Chinese companies at AIFC has doubled, surpassing 670. This is clear evidence of growing trust and interest in the centre’s opportunities. The current geopolitical regime, which has seen instability in the US stock market, means investors are looking further afield, including to China, which is presenting a host of investment opportunities, especially in the science and technology sectors, including AI, robotics, biotechnology, and new energy and materials.
In addition, visa-free travel between China and Kazakhstan and other factors will increase the importance and practical use of the AIFC for Chinese activities in East/Central Asia.
Impact of sanctions on China
Last month my colleagues, Waleed Tahirkheli, Raymond Xu and I wrote about the impact of UK/EU/US sanctions on China, warning that any retaliatory sanctions made by China could severely impact the world’s economy. It is also important for businesses to consider the introduction of the Regulations on the Implementation of the Anti-Foreign Sanctions Law of the People’s Republic of China and the impact these could have on cross-border commercial dispute resolution. These were launched against the backdrop of Article 33 of the Law on Foreign Relations of the People’s Republic of China, which came into effect on 1 July 2023. It provides that:
“…in response to acts that endanger its sovereignty, national security and development interests in violation of international law or fundamental norms governing international relations, the People’s Republic of China has the right to adopt corresponding counter-measures or restrictive measures.”
It goes on to state:
“…the State Council and its departments adopt administrative regulations and departmental rules as necessary, establish related working institutions and mechanisms, and strengthen inter-departmental coordination and cooperation to adopt and enforce measures mentioned in the preceding paragraph.”
Although we are entering into turbulent times, I can see great opportunities ahead for the East/Central Asia and Eastern European regions. One such opportunity is the upcoming Astana Finance Days conference, taking place on 4-5 September 2025 in Astana, Kazakhstan – a key platform for discussing the region’s growing financial landscape. I hope to see many friends and colleagues.
To make an appointment with myself or one of my colleagues, please call +44 (0) 203972 8469 or email us at mail@eldwicklaw.com.
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