The Government of the People's Republic of China and the Government of the Democratic People's Republic of Korea (hereinafter referred to as the "Contracting Parties"), Intending to create favorable conditions for investment by investors of one Contracting Party in the territory of the other Contracting Party, Recognizing that the reciprocal encouragement, promotion and protection of such investments will be conducive to stimulating business initiative of the investors and will increase prosperity in both States, Desiring to intensify the cooperation of both States on the basis of equality and mutual benefit, Have agreed as follows: