The Government of the Republic of Korea and the Government of the People's Republic of China (hereinafter referred to as " the Contracting Parties"), Desiring to strengthen economic cooperation between the two States, Intending to create favourable conditions for investment by investors of each State within the territory of the other State by means of the favourable treatment and the protection accorded by each Contracting Party to investment, business activities in connection therewith, and Recognizing that the encouragement and reciprocal protection of investment will stimulate economic and technological exchanges between the two States, Have agreed as follows: