Agreement on the Encouragement and Reciprocal Protection of Investments Between the Government of the People's Republic of China and the Government of the Republic of Kirghizstan


The original official languages of this BIT were: Chinese, Kirghiz, and English.  The Tsinghua Rule of Law Project has produced this unofficial English language version from the original Chinese text.  While the English language version is for the benefit of the website readers, users should rely on official language versions when advising clients or undertaking some legal process.  

The Government of the People's Republic of China and the Government of the Republic of Kirghizstan (hereinafter referred to as “the Contracting Parties”),
Desiring to develop the economic cooperation of both States on the basis of principle of mutual respect for sovereignty and principle of equality and mutual benefits;
Intending to encourage and protect investment made in the territory of one Contracting Party by investors of the other Contracting Party, and to create favorable conditions, and  

Have agreed as follows:

Article 1
For the purpose of this Agreement,

  1. The term "investment" means every kind of assets 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 shall mainly include:
    1. property rights of movable and immovable property as well as any other property rights;
    2. shares and any other kind of participation in enterprises and companies;
    3. claims to money or to any performance having an economic value;
    4. copyrights, industrial properties, know-how and technological process;
    5. rights to engage business activities conferred by laws, regulations or contract, particularly, right to search for or exploit natural resources.
  2. The term "investor", with regard to either Contracting Party means,
    1. any natural persons who have nationality of that Contracting Party in accordance with its laws and regulations;
    2. any enterprise or company established in the territory of either Contracting Party in its territory in accordance with its laws and regulations;

    Such natural person, enterprise or company shall have the right subject to laws and regulations of one Contracting Party to invest in the other Contracting Party.

  3. The term “returns” means the amounts yielded by an investment, includes but without limit to profits, dividends, royalties.
  4. The term “territory” means the territory of the People’s Republic of China and the territory of the Republic of Kirghizstan.

Article 2

  1. Each Contracting Party shall encourage investors of the other Contracting Party to make investments in its territory and admit such investments in accordance with its laws and regulations.
  2. Each Contracting Party shall grant assistance in and provide facilities for obtaining visas and working permits to nationals of the other Contracting Party engaging in activities associated with investments made in the territory of the former Contracting Party.

Article 3

  1. Either Contracting Party shall ensure the fair treatment and protection for the investment and activities associated with such investment of the other Contracting Party in its territory.
  2. The treatment referred to in Paragraph 1 of this Article shall not be less favorable than that accorded to investments and activities associated with such investments of investors of any third State.
  3. The treatment and privilege as mentioned in Paragraph 1 and 2 of this Article shall not include any preferential treatment or privilege accorded by the other Contracting Party to investments of investors of a third State by virtue of:
    1. participating in a free trade area, customs unions or economic union, or mutual economic assistance organization, or similar treatment and privilege accorded to participators in organizations above in accordance with effective international agreement before this Agreement is signed.
    2. international agreements on taxation or other taxation agreements;
    3. agreements on frontier trade.

Article 4

  1. Neither Contracting Party shall take any measures of nationalization or expropriation or any other measure having effect equivalent to nationalization or expropriation (hereinafter referred to as” expropriation”) against the investments made by investors of the other Contracting Party except for where under the conditions that without discrimination and against compensation, the needs of the public interests under legal procedure.
  2. The compensation mentioned in Paragraph 2 of this Article shall be equivalent to the actual value of the expropriated investments at the date before the day of expropriation decision was adopted or claimed. Compensation shall be made without undue delay
  3. Investors of one Contracting Party whose investments in the territory of the other Contracting Party suffer losses owing to war, a state of national emergency, riot or other similar events in the territory of the latter Contracting Party, treatment accorded by the latter Contracting Party, as regards indemnification or other settlement, shall not be less favorable than treatment which the latter Contracting Party accords to investors of a third State.

Article 5

  1. Each Contracting Party shall, subject to its own laws and regulations, guarantee to the investors of the other Contracting Party upon fulfillment by them of all tax obligations to transfer abroad of payments related to their investments made in its territory, including:
    1. returns as defined in Article 1 Para. 3 of this Agreement;
    2. proceeds obtained from the total or partial sale or liquidation of investments;
    3. payments on loans agreement relating to the investment;
    4. payments arising out of technology assistance, technology service and management fee;
    5. payments in connection with projects on contract;
    6. earnings or other payments of nationals of the State of other Contracting Party who work or provide service in connection with an investment in the territory of and in accordance with the legitimate amount of the former Contracting Party.

Article 6
The payment transfers, mentioned in Article 4 and Article 5 of this Agreement, shall be made at the prevailing exchange market rate of the Contracting Party accepting the investments on the date of payment transfers

Article 7

  1. Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible, be settled through diplomatic channel.
  2. If a dispute cannot thus be settled within six months, it shall, upon the request of either Contracting Party, be submitted to an 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 two months from the date of their appointment, together select a third arbitrator who is a national of a third State which has diplomatic relations with both Contracting Parties as Chairman of the arbitral tribunal agreed by both Contracting Parties.
  4. If the arbitral tribunal has not been constituted within four months from the date of the receipt of the written notice requesting 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 arbitral tribunal shall reach its award in accordance with the provisions of this Agreement and the generally recognized principles of international law.
  6. The tribunal shall reach its award by a majority of votes. Such award 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 award.
  7. Each Contracting Party shall bear the costs of its appointed arbitrator and of its representation in arbitral proceedings. The relevant costs of the Chairman and the tribunal shall be bone in equal parts by the Contracting Parties.

Article 8

  1. Dispute with respect to the amount of compensation in the case of expropriation between one Contracting Party and an investor of the other Contracting Party may submitted to the arbitral tribunal.
  2. Such arbitral tribunal shall be formed for each specific case as follows: each party to the dispute shall appoint an arbitrator. These two arbitrators shall appoint an arbitrator as Chairman who shall be a national of a third State. 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 Chairman of the International Arbitration Institute of the Stockholm Chamber of Commerce to make the necessary appointments.
  3. The arbitral 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 Chamber of Commerce in Stockholm..
  4. The arbitral tribunal shall reach its award by a majority of votes. Such award shall be final and binding upon both Contracting Parties. Either Contracting Party shall undertake responsibilities to enforce such award in accordance with its domestic laws.
  5. The arbitral tribunal shall deliver awards in accordance with provisions of this Agreement, laws and regulations of the Contracting Party in territory of which the investment was made (including rules of conflicts law) and generally accepted principles of international law.
  6. Each party concerned shall bear the cost of its own arbitrator and its representation in the arbitral proceedings. The cost of the Chairman in discharging his arbitral function and other fees shall be borne in equal parts by the Contracting Parties.

Article 9
If the treatment accorded by on Contracting Party to investment or activities associated with such investments made by the other Contracting Party in accordance with its laws and regulations or agreement with both Contracting Parties involved as members is more favorable than the treatment provided in this Agreement, the more favorable treatment shall be applicable.

Article 10
This Agreement shall apply to investments made in the territory of either Contracting Party in accordance with its legislation or rules or regulations by investors of the other Contracting Party prior to as well as after the entry into force of this Agreement.

Article 11

  1. The representatives of the two Contracting Parties shall hold meetings, if necessary, for the purpose of:
    1. reviewing the implementation of this Agreement;
    2. exchanging information on legal issues and investment opportunities concerning investment;
    3. resolving dispute arising out of investment;
    4. studying other issues in connection with investments;
    5. studying on possible amendments and supplements to this Agreement.
  2. Where either Contracting Party requests consultation on any matters of Para. 1 of this Article, the other Contracting Party shall give prompt response and the consultation be held alternately in Beijing and Bishkek.

Article 12

  1. This Agreement shall enter into force one month later from the date on which both Contracting Parties have notified each other in writing that their respective internal legal procedures have been fulfilled, and shall remain in force for a period of ten years.
  2. This Agreement shall continue in force if either Contracting Party fails to give a written notice to the other Contracting Party to terminate this Agreement one year before the expiration period specified in Paragraph 1 of this Article. The notice shall come into effect after 12 months the other Contracting Party’s receipt of the notice.
  3.  After the expiration of the initial ten years period, either Contracting Party may at any time thereafter terminate this Agreement by giving at least twelve months’ written notice to the other Contracting Party.
  4. With respect to investments made prior to the date of termination of this Agreement, the provisions of Article 1 to 11 shall continue to be effective for a further period of ten 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 May 14, 1992 in the Chinese, Kirghiz and Russian languages, all texts being equally authentic
For the Government of the People's Republic of China

 

 

For the Government of the Republic of Kirghizstan