AGREEMENT ON RECIPROCAL PROMOTION AND PROTECTION OF INVESTMENT BETWEEN THE GORERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT The Government of the People’s Republic of China and the Government of the Islamic Republic of Iran hereinafter referred to as the Desiring to intensify economic cooperation to the mutual benefit of both States; Intending to utilize their economic resources and potential facilities in the area of investments as well as to create and maintain Recognizing the need to promote and protect investments of the investors of the Contracting Parties in each others’ territory; Have agreed as follows: Article 1 DEFINITIONS For the purpose of this Agreement, the meanings of the terms used therein are as follows: 1. The term “investment” refers to every kind of property or asset, including the following, invested by the investors of one Contracting (a) movable and immovable property as well as rights related thereto; such as mortgages and pledges; (b) shares, debentures, stocks and any other kind of participation in companies; (c) right to claim money and/or any other performance having an economical value associated with an investment; (d) industrial and intellectual property rights; (e) special rights conferred by law including rights to search for, extract or exploit natural resources. Any change in the form in which assets are invested does not affect their character as investments, provided that such changes are 2. The term “investors” refers to the following persons who invest in the territory of the other Contracting Party within the framework (a) natural persons who, according to the laws of either Contracting Party, are considered to be its national and have not the nationality (b) legal entities, including companies, corporations, associations, and other organizations incorporated and constituted under the laws 3. The term “returns” refers to the amounts legally yielded by an investment including profit derived from investments, dividends, royalties, Article 2 PROMOTION OF INVESTMENTS 1. Either Contracting Party shall encourage its investors to invest in the territory of the other Contracting Party. 2. Either Contracting Party shall, within the framework of its laws and regulations, create favorable conditions for attraction of investments Article 3 ADMISSION OF INVESTMENTS 1. Either Contracting Party shall admit investments of investors of the other Contracting Party in its territory in accordance with its 2. When an investment is admitted, either Contracting Party shall, in accordance with its laws and regulations, grant visas, work permits Article 4 PROTECTION OF INVESTMENTS 1. Investments of investors of either Contracting Party effected within the territory of the other Contracting Party shall, in accordance 2. If a Contracting Party has accorded or shall accord in future special advantages or rights to investor(s) of any third state by virtue Article 5 MORE FAVORABLE PROVISIONS Notwithstanding the terms set forth in this Agreement, more favorable provisions which have been or may be agreed upon by either of Article 6 EXPROPRIATION AND COMPENSATION 1. Investments of investors of either Contracting Party shall not be nationalized, confiscated, expropriated or subjected to similar 2. The amount of compensation shall be equivalent to the value of investment immediately before the action of nationalization, confiscation Article 7 LOSSES Investors of either Contracting Party whose investments suffer losses due to any armed conflict, war or similar state of emergency Article 8 REPATRIATION AND TRANSFER 1. Each Contracting Party shall, in accordance with its laws and regulations, permit in good faith the following transfers related to (a) returns; (b) proceeds from the sale and/or liquidation of all or part of an investment; (c) royalties and fees related to transfer of technology agreement; (d) sums paid pursuant to Article 6 and/or 7 of this Agreement; (e) loan installments which are related to an investment and paid out of such investment activities; (f) monthly salaries, wages and other revenues received by the nationals of the other Contracting Party, who have obtained the corresponding 2. The above transfers shall be effected in a convertible currency and at the current rate of exchange in accordance with the exchange 3. The investor and the host Contracting Party may agree otherwise on the manner of repatriation or transfers referred to in this Article. Article 9 SUBROGATION If a Contracting Party or its designated agency, within the framework of a legal system, subrogates an investor pursuant to a payment (a) such subrogation shall be recognized by the other Contracting Party; (b) the subrogee shall not be enpost_titled to exercise any rights other than the rights which the investor would have been enpost_titled to exercise. Article 10 OBSERVANCE OF COMMITMENTS Either Contracting Party shall guarantee the observance of the commitments it has entered into with respect to investments of investors Article 11 SCOPE OF THE AGREEMENT This Agreement shall apply to investments, which are made prior to or after its entry into force by investors of either Contracting As far as the Islamic Republic of Iran is concerned, this Agreement shall only apply to the investments approved by Organization for Article 12 SETTLEMENT OF DISPUTES BETWEEN A CONTRACTING PARTY AND INVESTOR (S) OF THE OTHER CONTRACTING PARTY 1. If any dispute arises between the host Contracting Party and investor(s) of the other Contracting Party with respect to an investment, 2. In the event that the host Contracting Party and the investor(s) can not agree within six months from the date of notification of 3. A dispute primarily referred to the competent court of the host Contracting Party, as long as it is pending, can not be referred to 4. National courts shall not have jurisdiction over any dispute referred to arbitration. However, the provisions of this paragraph do 5. The host Contracting Party or the investor(s) of the other Contracting Party who desires to refer the dispute to arbitration shall 6. The ad hoc arbitral tribunal shall determine its own procedure and the place of arbitration. 7. The tribunal shall reach its award by a majority of votes. Such award shall be final and binding upon both parties to the dispute. 8. Each party to the dispute shall bear the costs of its appointed arbitrator and of its representation in arbitral proceedings. The Article 13 SETTLEMENT OF DISPUTES BETWEEN THE CONTRACTING PARTIES 1. All disputes arising between the Contracting Parties relating to the interpretation or application of this Agreement shall, in the In case the dispute is referred to the arbitral tribunal, either Contracting Party shall appoint an arbitrator within sixty days from 2. In case the chairman is to be appointed by the President of the International Court of Justice, if the President of the International 3. Subject to other provisions agreed by the Contracting Parties, the arbitral tribunal shall determine its procedure and place of arbitration. 4. The decisions of the arbitral tribunal shall be binding on the Contracting Parties. Article 14 VALIDITY OF THE AGREEMENT 1. This Agreement shall enter into force for a period of ten years on the first day of the following month after the date of the last 2. After the expiration of the validity or termination of this Agreement its provisions shall apply to investments under this Agreement In Witness Whereof the undersigned, duly authorized thereto by respective Governments, have signed this Agreement. Done in duplicate at Beijing on June 22, 2000 corresponding to 2nd Tir1379 in the Chinese, Persian and English languages, all texts For the Government of theï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿For the Government of the People’s Republic of Chinaï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿ï¿¿Islamic Republic of Iran |
The Government of the People’s Republic of China
2000-06-22