AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINAAND THE GOVERNMENT OF THE FEDERAL REPUBLIC OF YUGOSLAVIA CONCERNING THERECIPROCAL ENCOURAGEMENT AND PROTECTION OF INVESTMENTS
AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINAAND THE GOVERNMENT OF THE FEDERAL REPUBLIC OF YUGOSLAVIA CONCERNING THERECIPROCAL ENCOURAGEMENT AND PROTECTION OF INVESTMENTS
Whole document
The Government of the People's Republic of China and the Government of
the Federal Republic of Yugoslavia (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 investment will be conducive to stimulating business
initiative of the investors and will increase prosperity in both States;
Desiring to intensify the economic cooperation of both States on the
basis of equality and mutual benefits;
Have agreed as follows:
Article 1 Definitions
For the purpose of this Agreement,
1. The term "investment" means every kind of asset invested by
investors of one Contracting Party in accordance with the laws and
regulations of the other Contracting Party in the territory of the Latter,
and in particular, though not exclusively, includes:
(1) movable, immovable property and other property rights such as
mortgages and pledges;
(2) shares, stocks, bonds, and any other kind of participation in
companies;
(3) claims to money or to any other performance having an economic
value;
(4) copyrights, industrial property, know-how and goodwill;
(5) concessions conferred by law or under Contract permitted by law,
including concessions to search for or, cultivate, extract or exploit
natural resources.
2. The term "investor" means:
(1) In the case of the People's Republic of China, any natural person
who has nationality of the People's Republic of China;
In the case of the Federal Republic of Yugoslavia, any natural person
who has nationality of the Federal Republic of Yugoslavia, having a
residence or domicile in its territory;
(2) Any legal person, including companies, having a seat in the
territory of the Contracting Party, constituted in accordance with the
laws and regulations of that Contracting Party.
3. The term "returns" means the amounts yielded by investments, such
as profits, dividends, capital gains, interests, royalties or other
income.
Article 2 Encouragement and Protection of Investment
1. Each Contracting party shall encourage investors of the other
Contracting Party to make investment in its territory and admit such
investment in accordance with its laws and regulations
2. Each Contracting Party shall grant assistance in and provide
facilities for obtaining visa and working permit to a national of the
other Contracting Party to or in the territory of the Former in connection
with activities associated with such investments.
3. Investments of investors of either Contracting Party shall at all
times be accorded fair and equitable treatment and shall enjoy full
protection and security in the territory of the other Contracting Party.
Article 3 Treatment of Investment
1. Neither Contracting Party shall in its territory subject
investments or returns of investors of the other Contracting Party to
treatment less favourable than that which it accords to investments or
returns of investors of any third State.
2. In addition to the provisions of paragraph 1 of this Article,
either Contracting Party shall, to the extent possible, accord treatment
in accordance with the stipulations of its laws and regulations to the
investments of investors of the other Contracting Party, the same as that
accorded to its own investors.
3. The provisions of paragraphs 1 and 2 of this Article shall not be
construed so as to oblige one Contracting party to extend to the investors
of the other Contracting Party the benefit of any treatment, preference or
privilege resulting from:
(1) any existing or future customs union, free trade area o? similar
international agreement or agreement for facilitating border trade to
which either of the Contracting parties is or may become a party, or
(2) any international agreement or arrangement relating wholly or
mainly to the avoidance of double taxation.
Article 4 Expropriation
Investments of investors of either Contracting Party shall not be
expropriated, nationalized or subject to measures having effect equivalent
to expropriation or nationalization (hereinafter referred to as
"expropriation") in the territory of the other Contracting Party except
for a public (general) purpose related to the internal needs of that
Contracting Party and against reasonable compensation. Such compensation
shall amount to the market value of the investment expropriated
immediately before the expropriation, or before the impending
expropriation became public knowledge and shall include interest at a
normal rate until the date of payment. The compensation shall be made
without undue delay, effectively realizable and freely transferable.
Article 5 Compensation for Losses
Investors of one Contracting Party whose investments in the territory
of the other Contracting Party suffer losses owing to war or other armed
conflict, a state of national emergency, revolt, insurrection or riot in
the territory of the latter Contracting Party, shall be accorded by the
latter Contracting Party treatment, as regards restitution,
indemnification, compensation or other settlement, if any, no less
favorable than that which the latter Contracting Party accords to
investors of any third State. Resulting payments shall be freely
transferable.
Article 6 Transfer
1. Each Contracting Party shall, subject to its laws and regulations,
grant investors of the other Contracting Party, upon the meeting of all
due obligations, the transfer of their investments and returns held in the
territory of the one Contracting Party, including:
(1) capital and additional funds necessary for maintenance and
development of an investment;
(2) capital gains, profits, dividends, interests and other income;
(3) proceeds from a total or partial liquidation of an investment;
(4) royalties and fees.
2. Each Contracting Party shall, subject to its laws and regulations,
upon the meeting of all due obligations, grant assistance in transferring
earnings of a national of the other Contracting Party who works in
connection with an investment in the territory of the Contracting Party.
3. The transfers mentioned above shall be made at the prevailing
exchange rate of the Contracting Party accepting the investment o? the
date of transfer.
Article 7 Subrogation
If a Contracting Party or its Agency makes payment to an investor?
under a guarantee it has granted to an investment of such investor? in
the territory of the other Contracting Party, such other Contracting Party
shall recognize the transfer of any right o? claim of such investor to
the former Contracting Party or it Agency and recognize the subrogation of
the former Contraction? Party or its Agency to such right or claim.
Article 8 Settlement of Disputes between the Contracting Parties
1. Any dispute between the Contracting Parties concerning the
interpretation or application of this Agreement shall, as far a possible,
be settled by consultation.
2. If a dispute cannot thus be settled within six months,? shall,
upon the request of either Contracting Party, be submitted to an ad hoc
arbitral tribunal.
3. Such tribunal comprises of three arbitrators. Within two months
from the date on which either Contracting Party receives the written
notice requesting for arbitration from the other Contracting Party, each
Contracting Party shall appoint one arbitrator. Those two arbitrators
shall, within further two months, together select a third arbitrator who
is a national of a third State which has diplomatic relations with both
Contracting Parties. The third arbitrator shall be appointed by the two
Contracting Parties as Chairman of the arbitral tribunal.
4. If the arbitral tribunal has not been constituted within four
months from the date of receipt of the written notice for arbitration,
either Contracting Party may, in the absence of any other agreement,
invite the President of the International Court of Justice to appoint the
arbitrator (s) who has or have not yet been appointed. If the President is
a national of either Contracting Party or is otherwise prevented from
discharging the said function, the next most senior member of the
International Court of Justice who is not a national of either Contracting
Party shall be invited to make the necessary appointment(s).
5. The arbitral tribunal shall determine its own procedure. The
tribunal shall reach its decision in accordance with the provisions of
this Agreement and the principles of international law recognized by both
Contracting Parties.
6. The tribunal shall reach its decision by a majority of votes. Such
decision shall be final and binding on both Contracting Parties. The ad
hoc arbitral tribunal shall, upon the request of either Contracting Party,
explain the reasons of its decision.
7. Each Contracting Party shall bear the cost of its appointed
arbitrator and of its representation in arbitral proceedings. The relevant
costs of the Chairman and the tribunal shall be borne in equal parts by
the Contracting Parties.
Article 9 Settlement of Disputes between
an Investor and a Contracting Party
1. Any dispute between an investor of one Contracting Party and the
other Contracting Party in connection with an investment in the territory
of the other Contracting Party shall, as far as possible, be settled
amicably through negotiations between the parties to the dispute.
2. If the dispute cannot be settled through negotiations within six
months, either party to the dispute shall be entitled to submit the
dispute to the competent court of the Contracting Party accepting the
investment.
3. If a dispute involving the amount of compensation for expropriation
cannot be settled within six months after resort to negotiations as
specified in Paragraph 1 of this Article, it may be submitted at the
request of either party to the International Centre for Settlement of
Investment Disputes (ICSID) or to an ad hoc arbitral tribunal. The
provisions of this Paragraph shall not apply if the investor concerned has
resorted to the procedure specified in the Paragraph 2 of this Article.
4. Such an arbitral tribunal shall be constituted for each individual
case in the following way: each party to the dispute shall appoint an
arbitrator, and these two shall select a national of a third State which
has diplomatic relations with the two Contracting Parties as Chairman. The
first two arbitrators shall be appointed within two months of the written
notice for arbitration by either party to the dispute to the other, and
the Chairman be selected within four months. If within the period
specified above, the tribunal has not been constituted, either party to
the dispute may invite the Secretary General of the International Centre
for Settlement of Investment Disputes to make the necessary appointments.
If the Secretary General is a national of either Contracting Party or is
otherwise prevented from discharging the said function, the next most
senior member of the International Centre for Settlement of Investment
Disputes who is not a national of either Contracting Party shall be
invited to make the necessary appointments.
5. The tribunal shall determine its own procedure. However, the
tribunal may, in the course of determination of procedure, take as
guidance the Arbitration Rules of the International Center for Settlement
of Investment Disputes.
6. The tribunal shall reach its decision by a majority of votes. Such
decision shall be final and binding on both parties to the dispute. Both
Contracting Parties shall commit themselves to the enforcement of the
decision in accordance with their respective domestic law.
7. The tribunal shall adjudicate in accordance with the law of the
Contracting Party to the dispute accepting the investment including its
rules on the conflict of laws, the provisions of this Agreement as well as
the generally recognized principles of international law accepted by both
Contracting Parties.
8. Each party to the dispute shall bear the cost of its appointed
member of the tribunal and of its representation in the proceedings. The
cost of the appointed Chairman and the remaining costs shall be borne in
equal parts by the parties to the dispute.
Article 10 Other Rights and Obligations
If the legislation of either Contracting Party or international
obligations existing at present or established hereafter between the
Contracting Parties in addition to this Agreement result in a position
entitling investments by investors of the other Contracting Party to
treatment more favourable than is provided for by this Agreement, such
position shall not be affected by this Agreement. Each Contracting Party
shall observe any commitment in accordance with its laws additional to
those specified in this Agreement entered into by the Contracting Party,
its investors with investors of the other Contracting Party as regards
their investments.
Article 11 Consultation
1. The representatives of the two Contracting Parties shall hold
meetings from time to time for the purpose of:
(1) reviewing the implementation of this Agreement;
(2) exchanging legal information and investment opportunities;
(3) resolving dispute arising out of investments;
(4) forwarding proposals on promotion of investment;
(5) studying other issues in connection with investments?
2. Where either Contracting Party requests consultation on an?
matters of Paragraph 1 of this Article, the other Contracting Part? shall
give prompt response and the consultation be held alternatel? in Beijing
and Belgrade.
Article 12 Entry into Force
This Agreement shall enter into force on the first day of the
following month after the date on which both Contracting Parties have
notified each other in writing that their respective internal legal
procedures have been fulfilled.
Article 13 Pre-agreement investments
The present Agreement shall apply to investments in the territory of a
Contracting Party made in accordance with its legislation by investors of
the other Contracting Party prior to the entry into force of this
Agreement, being applicable to these investments from the date of its
entry into force. However, the Agreement shall not apply to disputes that
have arisen before its entry into force.
Article 14 Duration and Termination
1. This Agreement shall remain in force for a period of ten years,
and shall continue in force if either Contracting Party fails to give a
written notice to the other Contracting Party to terminate this Agreement.
2. After the expiration of the initial ten-year period, either
Contracting Party may, at any time thereafter terminate this Agreement by
giving at least one year's written notice to the other Contracting Party.
3. With respect to investments made prior to the date of termination
of this Agreement, the provisions of this Agreement shall continue to be
effective for a further period of five years from such date of
termination.
In witness whereof, the duly authorized representatives of their
respective Governments have signed this Agreement.
Done in duplicate at Beijing on DEC 18, 1995 in the Chinese, Serbian
and English languages, all texts being equally authentic. In case of
divergence of interpretation, the English text shall prevail.
For the Government of For the Government of
the People's Republic the Federal Republic of
of China Yugoslavia
evented from
discharging the said function, the next most senior member of the
International Court of Justice who is not a national of either Contracting
Party shall be invited to make the necessary appointment(s).
5. The arbitral tribunal shall determine its own procedure. The
tribunal shall reach its decision in accordance with the provisions of
this Agreement and the principles of international law recognized by both
Contracting Parties.
6. The tribunal shall reach its decision by a majority of votes. Such
decision shall be final and binding on both Contracting Parties. The ad
hoc arbitral tribunal shall, upon the request of either Contracting Party,
explain the reasons of its decision.
7. Each Contracting Party shall bear the cost of its appointed
arbitrator and of its representation in arbitral proceedings. The relevant
costs of the Chairman and the tribunal shall be borne in equal parts by
the Contracting Parties.
Article 9 Settlement of Disputes between
an Investor and a Contracting Party
1. Any dispute between an investor of one Contracting Party and the
other Contracting Party in connection with an investment in the territory
of the other Contracting Party shall, as far as possible, be settled
amicably through negotiations between the parties to the dispute.
2. If the dispute cannot be settled through negotiations within six
months, either party to the dispute shall be entitled to submit the
dispute to the competent court of the Contracting Party accepting the
investment.
3. If a dispute involving the amount of compensation for expropriation
cannot be settled within six months after resort to negotiations as
specified in Paragraph 1 of this Article, it may be submitted at the
request of either party to the International Centre for Settlement of
Investment Disputes (ICSID) or to an ad hoc arbitral tribunal. The
provisions of this Paragraph shall not apply if the investor concerned has
resorted to the procedure specified in the Paragraph 2 of this Article.
4. Such an arbitral tribunal shall be constituted for each individual
case in the following way: each party to the dispute shall appoint an
arbitrator, and these two shall select a national of a third State which
has diplomatic relations with the two Contracting Parties as Chairman. The
first two arbitrators shall be appointed within two months of the written
notice for arbitration by either party to the dispute to the other, and
the Chairman be selected within four months. If within the period
specified above, the tribunal has not been constituted, either party to
the dispute may invite the Secretary General of the International Centre
for Settlement of Investment Disputes to make the necessary appointments.
If the Secretary General is a national of either Contracting Party or is
otherwise prevented from discharging the said function, the next most
senior member of the International Centre for Settlement of Investment
Disputes who is not a national of either Contracting Party shall be
invited to make the necessary appointments.
5. The tribunal shall determine its own procedure. However, the
tribunal may, in the course of determination of procedure, take as
guidance the Arbitration Rules of the International Center for Settlement
of Investment Disputes.
6. The tribunal shall reach its decision by a majority of votes. Such
decision shall be final and binding on both parties to the dispute. Both
Contracting Parties shall commit themselves to the enforcement of the
decision in accordance with their respective domestic law.
7. The tribunal shall adjudicate in accordance with the law of the
Contracting Party to the dispute accepting the investment including its
rules on the conflict of laws, the provisions of this Agreement as well as
the generally recognized principles of international law accepted by both
Contracting Parties.
8. Each party to the dispute shall bear the cost of its appointed
member of the tribunal and of its representation in the proceedings. The
cost of the appointed Chairman and the remaining costs shall be borne in
equal parts by the parties to the dispute.
Article 10 Other Rights and Obligations
If the legislation of either Contracting Party or international
obligations existing at present or established hereafter between the
Contracting Parties in addition to this Agreement result in a position
entitling investments by investors of the other Contracting Party to
treatment more favourable than is provided for by this Agreement, such
position shall not be affected by this Agreement. Each Contracting Party
shall observe any commitment in accordance with its laws additional to
those specified in this Agreement entered into by the Contracting Party,
its investors with investors of the other Contracting Party as regards
their investments.
Article 11 Consultation
1. The representatives of the two Contracting Parties shall hold
meetings from time to time for the purpose of:
(1) reviewing the implementation of this Agreement;
(2) exchanging legal information and investment opportunities;
(3) resolving dispute arising out of investments;
(4) forwarding proposals on promotion of investment;
(5) studying other issues in connection with investments?
2. Where either Contracting Party requests consultation on an?
matters of Paragraph 1 of this Article, the other Contracting Part? shall
give prompt response and the consultation be held alternatel? in Beijing
and Belgrade.
Article 12 Entry into Force
This Agreement shall enter into force on the first day of the
following month after the date on which both Contracting Parties have
notified each other in writing that their respective internal legal
procedures have been fulfilled.
Article 13 Pre-agreement investments
The present Agreement shall apply to investments in the territory of a
Contracting Party made in accordance with its legislation by investors of
the other Contracting Party prior to the entry into force of this
Agreement, being applicable to these investments from the date of its
entry into force. However, the Agreement shall not apply to disputes that
have arisen before its entry into force.
Article 14 Duration and Termination
1. This Agreement shall remain in force for a period of ten years,
and shall continue in force if either Contracting Party fails to give a
written notice to the other Contracting Party to terminate this Agreement.
2. After the expiration of the initial ten-year period, either
Contracting Party may, at any time thereafter terminate this Agreement by
giving at least one year's written notice to the other Contracting Party.
3. With respect to investments made prior to the date of termination
of this Agreement, the provisions of this Agreement shall continue to be
effective for a further period of five years from such date of
termination.
In witness whereof, the duly authorized representatives of their
respective Governments have signed this Agreement.
Done in duplicate at Beijing on DEC 18, 1995 in the Chinese, Serbian
and English languages, all texts being equally authentic. In case of
divergence of interpretation, the English text shall prevail.
For the Government of For the Government of
the People's Republic the Federal Republic of
of China Yugoslavia
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