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 favorable 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 relevant 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 one Contracting Party to invest in the other Contracting Party.

  3. The term “returns” means the amounts yielded by an investment, includes profits, dividends, interests and royalties.
  4. The term “territory” means : the territory of either Contracting Party and maritime areas, adjacent to coast line of either Contracting Party over which the respective Contracting Party exercises its sovereign rights or jurisdiction, and exercises rights of exploration, extraction, exploitation, development and preservation of natural resources of such areas in accordance with international law.

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. Without prejudice 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.

Article 3

  1. Either Contracting Party shall ensure the fair treatment and protection for the investment or activities associated with such investment made by investors 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 any third State by virtue of:
    1. participating free trade area, customs unions or economic unions, or mutual economic assistance organization, or similar treatment and privilege accorded to participators of 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 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 time when expropriated. 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 indemnification or other relevant treatment accorded by the latter Contracting Party, if any, shall be no less favorable than treatment which the latter Contracting Party accords to investors of any 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 at the prevailing market rate of exchange on the date of transfer., including:
    1. returns as defined in Article 1 Para.(c) of this Agreement;
    2. compensation against losses in accordance with Article 4 of this Agreement;
    3. proceeds obtained from the total or partial liquidation of investments;
    4. payments on loans agreement;
    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;
  2. Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible, be settled 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 shall comprise of three arbitrators. Within two months of the receipt of the written notice requesting arbitration, each Contracting Party shall appoint one arbitrator respectively. 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 may be the Chairman upon consent from both Contracting Parties..
  5. If the arbitral tribunal has not been constituted within four months from the receipt of the written notice requesting arbitration, either Contracting Party may, in the absence of any other agreement, 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 functions, the Member of the International Court of Justice next in seniority who is not a national of either Contracting Party shall be invited to make such necessary appointments.
  6. 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.
  7. The arbitral tribunal shall reach its award by a majority of votes. Such award shall be final and binding upon both Contracting Parties. The arbitral tribunal shall, upon the request of either Contracting Party, explain the reasons of its award.
  8. 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 other fees shall be borne in equal parts by the Contracting Parties, where there is no specific provision provided.

Article 6
This Agreement shall apply to all investments made by investors of one Contracting Party in the territory of the other Contracting Party with both Contracting parties are with diplomatic relations.

Article 7

  1. Any issue relating to reciprocal investments shall be fairly resolved as soon as possible basing on the sprit of voluntary and cooperation.  
  2. Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible, be settled 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 shall comprise of three arbitrators. Within two months of the receipt of the written notice requesting arbitration, each Contracting Party shall appoint one arbitrator respectively. 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 may be the Chairman upon consent from both Contracting Parties..
  5. If the arbitral tribunal has not been constituted within four months from the receipt of the written notice requesting arbitration, either Contracting Party may, in the absence of any other agreement, 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 functions, the Member of the International Court of Justice next in seniority who is not a national of either Contracting Party shall be invited to make such necessary appointments.
  6. 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.
  7. The arbitral tribunal shall reach its award by a majority of votes. Such award shall be final and binding upon both Contracting Parties. The arbitral tribunal shall, upon the request of either Contracting Party, explain the reasons of its award.
  8. 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 other fees shall be borne in equal parts by the Contracting Parties, where there is no specific provision provided.

Article 8
Where both Contracting Parties are members of the Convention on the Settlement of Disputes between States and Nationals of Other States, done at Washington on March 18, 1965, both Contracting Parties may conclude supplementary agreement on submitting disputes to International Centre for Settlement of Investment Disputes (ICSID).

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 international 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

  1. The representatives of the Contracting Parties shall hold meetings the purpose of:
    1. reviewing the implementation of this Agreement;
    2. exchanging legal information and investment opportunities;
    3. resolving disputes arising out of investments;
    4. studying other issues in connection with investment;
    5. studying on possible amendments or supplements to this Agreement.
  2. Where either Contracting Party requests consultation on any matter of Paragraph 1 of this Article, the other Contracting Party shall give prompt response and the consultation be held alternatively in Beijing and Ashkhabad.

Article 11

  1. This Agreement shall enter into force on the 30th 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 necessary have been fulfilled 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 at least one year before the expiration of the period specified in Paragraph 1 of this Article.
  3. After the expiration of initial fifteen years period, either Contracting Party may at any time thereafter terminate this Agreement by giving a written notice to the other Contraction Party. The notice shall come into effect after 12 months the other Contracting Party’s receipt of the 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 15 years from such date of termination.

Done in duplicate at Beijing on November 21st, 1992 in the Chinese, Turkmen 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 Turkmenistan