The Government of the People’s Republic of China and the Government of the State of Bahrain (hereinafter refered to as the “Contracting Parties”), desiring to encourage, protect and create favourable conditions for investment by investors of one Contracting Party in the territory of the other Contracting Party and based on the principles of mutual respect for sovereignty, equality and mutual benefit and for the purpose of the development of economic cooperation between both Parties, Have agreed as follows: