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 Moldova



The original official languages of this BIT were: Chinese and Romanian.  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 Moldova (hereinafter referred to as “the Contracting Parties”),

Intending to encourage and protect investment made in the territory of one Contracting Party by investors of the other Contracting Party, and

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; and to create favourable conditions,

Have agreed as follows:


Article 1

For the purpose of this Agreement,

  1. The term "investment" means every kind of asset invested in the territory of the one Contracting Party in accordance with its laws and regulations, and shall mainly include:
    1. movable and immovable property as well as other property rights;
    2. shares and any other kind of rights and interests in companies;
    3. claims to money or to any performance having an economic value;
    4. intellectual properties, industrial properties , know-how and technological processes;
    5. rights conferred by law or contract, particularly, right to search for, or exploit natural resources.
  2. The term "investor" means:
  3. in respect of the People’s Republic of China

    1. natural persons who have nationality of the People’s Republic of China;
    2. any economic entity established in accordance with the laws of the People's Republic of China and having their seats in the territory of the People's Republic of China.

    In respect of the Republic of Moldova

    1. natural persons who have nationality of the Republic of Moldova;
    2. any legal person established in accordance with the laws of the Republic of Moldova and having their seats in the territory of the Republic of Moldova.

    However, investor of either Contracting Party shall have the right subject to laws and regulations of one Contracting Party to invest in the other Contracting Party.

  4. The term “returns” means the net profit after taxation yielded by an investment , such as profits, dividends, royalties and any legitimate income.
  5. The term “territory” means:
  6. the territory of the People’s Republic of China and the territory of the Republic of Kazakhstan;

    maritime areas, adjacent to coast line of either Contracting Party over which the respective Contracting Party exercises in accordance with international law its sovereign rights or jurisdiction.


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 provide assistance as for granting 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 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 a 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 economic or customs unions, or free trade area;
    2. international agreement on taxation;
    3. agreement on frontier trade;

Article 4

  1. Neither Contracting Party shall take any measures of expropriation , nationalization or any dispossession having effect equivalent to nationalization or expropriation against the investments of investors of the other Contracting Party except under the following conditions:
    1. for the Republic interests;
    2. under domestic legal procedure;
    3. without discrimination;
    4. against compensation.
  2. The compensation mentioned in Paragraph 1 of this Article shall be equivalent to the actual value of the expropriated investments immediately at the time of the decision of expropriation was made. Compensation shall be made without undue delay, and shall be convertible and be freely transferred from the territory of one Contracting Party to the territory of the other Contracting Party.
  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, revolt, riot or other similar events 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 favourable than treatment which the latter Contracting Party accords to investors of any the third State.

Article 5

  1. Each Contracting Party shall, subject to its laws and regulations, guarantee to the investors of the other Contracting Party the free transfer of payments, include:
    1. profits, dividends, interests, and other legitimate incomes ;
    2. proceeds obtained from the total or partial sale or liquidation of investments;
    3. payments on loans agreement relating to investment;
    4. loyalties provided in Article 1 Para.1(d) of this Agreement;
    5. technology assistance fee, technology service and management fee;
    6. earnings of nationals of the State of other Contracting Party who involved in an investment in the territory of the former Contracting Party;   
  2. The payment transfers mentioned above, shall be conducted in accordance with the market rate of exchange on the date of payment transfers of one Contracting Party admitting the investments.

Article 6

In case one Contracting Party or any of its institution has granted any guarantee against non-commercial risks in respect of an investment by its investor and has made payment to such investor under that guarantee, the other Contracting Party shall recognize subrogation of the rights or claims above. The subrogation of rights or claims shall be within the scope of the original rights or claims of original investor.


Article 7

  
  1. Any dispute between the Contracting parties concerning the interpretation or application of this Agreement shall, as far as possible, be settled with consultation 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 ad hoc arbitral tribunal.
  3. Such tribunal comprises of three arbitrators, and shall be constituted in the following way: 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. These two arbitrators shall, within further two months from the date of appointment of the second arbitrator, together select a third arbitrator as the third arbitrator who is a national of a third State which has diplomatic relations with both Contracting Parties; the third arbitrator may be the Chairman upon consent from both Contracting Parties.
  4. If the arbitral tribunal has not been constituted within 4 months on accepting written notice to submit the dispute to arbitral tribunal, where no existing agreement of either Contracting Party, either Contracting Party shall invite the President of the International Court of Justice to make any necessary appointments. If the President is a national of either Contracting Party or is otherwise prevented from discharging the said function, either Contracting Party shall invite one senior member of the International Court of Justice who is not a national of either Contracting Party shall be invited to make the necessary appointments.
  5. The ad hoc arbitral tribunal shall determine its own procedure. The tribunal shall reach its award in accordance with the provisions of this Agreement and principles of international law accepted by both Contracting Parties.
  6. The arbitral tribunal shall reach its award by a majority of votes. Such award shall be final and binding upon both Contracting Parties. The Tribunal shall, upon the request of either Contracting Party, explain the basis of its award.
  7.  
  8. 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 8

  1. Any legal dispute between one Contracting Party and an investor of the other Contracting Party in connection with an investment in the territory of the former Contracting Party shall, as far as possible, be settled amicably through negotiations between the parties to the dispute.
  2. If a dispute cannot thus be settled within six months through negotiation, either Contracting Party has the right to submit the dispute to competent court of the Contracting Party admitting the investment.
  3. Dispute in respect to the amount of compensation in the case of expropriation, if it can not be thus resolved in accordance with procedure provided in Para.1 of this Article, upon request from either Contracting Party, such dispute shall be summated to an ad hoc arbitral tribunal. If any relating investor has resorted to proceedings provided in Para. 2 of this Article, provision of this Para. shall not be applicable.
  4. Such arbitral tribunal shall be formed 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 which has diplomatic relations with both Contracting Parties. 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 of the International Centre for the Settlement of Investment Disputes (ICSID) to make the necessary appointments.
  5. The arbitral tribunal shall determine its own procedure, and in such case may refer to the Arbitration Rules of the International Centre for the Settlement of Investment Disputes.
  6. 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.
  7. The arbitral tribunal shall deliver awards in accordance with laws and regulations (including rules of conflicts law) of the Contracting Party admitting the investment, provisions of this Agreement, generally admitted principles of international law accepted by both Contracting Parties.
  8. Each party concerned shall bear the cost of its own arbitrator and its representation in the arbitral proceedings. The cost of the Chairman and other fees of the arbitral tribunal shall be borne in equal parts by the Contracting Parties.

 

Article 9

If the treatment to be accorded to investment or activities associated with such investments of investors of one Contracting Party to investors of the other Contracting Party in accordance with its laws and regulations is more favourable than the treatment provided in this Agreement, the more favourable treatment shall be applicable.


Article 10

The Agreement shall apply to investments which are made prior to or after its entry into force by investors of either Contracting Party in accordance with the laws and regulations of the other Contracting party in the territory of the latter.


Article 11

  1. The representatives of the two Contracting Parties shall hold meetings 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. providing proposals on investment promotion;
    5. studying other issues in connection with investments.
  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 Kishinev.

Article 12

  1. This Agreement shall enter into force on the 30th day from the date of each Contracting Party shall notify the other Contracting Party by mutual notice of the fulfillment of its internal legal procedures required, and shall remain in force for a period of five 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 specified in Para.1 of this Article.
  3. After the expiration of the initial five year period, either Contracting State may at any time thereafter terminate this Agreement by giving at least one year's 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 November 6, 1992 in the Chinese and Romanian languages, both texts being equally authentic.

  

For the Government of the People’s Republic of China

Representative

GU Yongjiang


For the Government of the Republic of Moldova

Representative

安•凯普蒂内