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 Turkmenistan   



The original official languages of this BIT were: Chinese, Turkmen, and Russian.  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 Turkmenistan (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 to create favourable conditions, 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;

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 include in particular:
    1. movable and immovable property ( real property, building, equipment or other materials) as well as any property rights;
    2. shares, securities, negotiable securities and any other kind of participation in enterprises;
    3. claims to money or to any performance of contract having an economic value;
    4. copyrights, industrial properties such as patents, industrial designs and samples, trademarks, trade names, appellations of origin know-how, etc;
    5. rights to engage business activities conferred by law or contract, particularly, right to search for, exploit or use natural resources.
    6. compensable services.
  2. The term "investor" means, with regard to either Contracting Party, natural persons or legal persons established in the territory of either Contracting Party in its territory in accordance with its existing laws and regulations;
  3. However, such natural person or legal person 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 amounts yielded by an investment, includes profits, dividends, interests, royalties.
  5. The term “territory” means :
  6. the territory of either Contracting Party and 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, and exercises rights of exploration, extraction, exploitation, development and preservation of natural resources of such areas.


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. Subject to its laws and regulations, 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.
  3.  

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 free trade area, customs unions or economic unions, or mutual economic assistance organization, or international agreement that one Contracting Party effectively accords similar preferential treatment and privilege to participators of organizations above before signing this Agreement ;
    2. international agreement on taxation or other taxation agreements;
    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 (hereinafter referred to as” expropriation”) against the investments made by investors of the other Contracting Party except for needs of the public interests; under domestic legal procedure; against compensation without discrimination.
  2. The compensation mentioned in Paragraph 1 of this Article shall be equivalent to the actual value of the expropriated investments at the date of expropriation was conducted.
  3. 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.
  4. 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

  

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. compensations against losses in accordance with Article 4 of this Agreement;
  3. proceeds obtained from the total or partial sale or liquidation of investments;
  4. payments on loans agreement relating to investment;
  5. payments arising out of technology assistance, technology service and management fee;
  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 the former Contracting Party;

Article 6

This Agreement shall be applicable to all investments made within its territory in accordance with its laws and regulations made by investors of one Contracting Party after establishing diplomatic relation between both Contracting Parties


Article 7

  1. The Contracting Parties shall be voluntary to fairly resolve any dispute relating to investment by the sprit of cooperation as soon as possible.
  2. 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.
  3. 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.
  4. 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
  5. 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.
  6. 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.
  7. The arbitral tribunal shall determine its own procedure. The tribunal shall reach its award in accordance with the provisions of this Agreement and generally accepted principles of international law.
  8. 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.   
  9. 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

If both Contracting Parties are members of the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States signed at Washington DC on March 18, 1965, the Contracting Parties may conclude the supplement agreement on dispute submitting to the International Centre for the Settlement of Investment Disputes (ICSID).


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 or international agreement with both Contracting Parties involved as members is more favourable than the treatment provided in this Agreement, the more favourable treatment shall be applicable.


Article 10

  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. studying other issues in connection with investments;
    5. studying on possible amendments and supplements of 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 Ashgabat.

Article 11

  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 fifteen 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 fifteen 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. The notice shall come into force after a period of 12 months since the receipt of such notice.
  4. With respect to investments made prior to the date of termination of this Agreement, the provisions of Article 1 to 10 shall continue to be effective for a further period of fifteen years from such date of termination.

Done in duplicate at Beijing on November 21, 1992 in the Chinese, Turkmen and Russian languages, all texts being equally authentic.


For the Government of the People’s Republic of China

Representative

GU Yongjiang

(Signature )


For the Government of the Republic of Turkmenistan

Representative

Ovezov

(Signature )