Korea and China concluded a new bilateral investment treaty (BIT) in september 2007. It replaces the 1992 BIT between the two countries. The new Korea-China BIT offers investors enhanced protection, as compared to the previous BIT, both in their broad and effective investorstate dispute provisions, and in their developed substantive protections. The new Korea-China BIT is one of the new generation BITs into which China has entered since the late 1990s. China's new generation BITs breaks with her long-standing reservations towards investor-state dispute settlement and national treatment. China's new BIT practice may be primarily prompted by the adoption of China's 'Going Abroad' policy encouraging Chinese outbound investment. The change in the China's BIT practice may also reflects its greater willingness to protect foreign investment to the level of investment protection that prevail in international law and practice. No investor-state arbitrations have been brought as yet against the Chinese Government. Under the new generation BITs, however, the Chinese government is no longer safe from investment claims. To avoid unwelcome disputes, the Chinese government has to further improve foreign investment environment and increase its ability to manage the relationship with foreign investors effectively. Three way negotiations among Korea, China and Japan is ongoing on Trilateral Investment Treaty. Korea and Japan demand that the treaty should contain the same high standards as are seen in the recently concluded investment treaties. But it is not certain whether China will accept a treaty beyond the level of its BITs. A high-standard investment treaty, if successfully concluded, would not only help integrate the economies of the three countries, but also give a fresh boost to the start of FTA negotiations.