AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF BARBADOS CONCERNING THE ENCOURAGEMENT AND The Government of the People’s Republic of China and the Government of Barbados (hereinafter referred to as the Contracting Parties). Desiring to create favourable conditions for greater investment by investors in the territories of the Contracting Parties; Recognising that the reciprocal encouragement, promotion and protection of such investments will be conducive to the stimulation of Desiring to intensify the economic co-operation of both States on the basis of equality and mutual benefit; Hereby agree as follows: Article 1 Definitions For the purposes of this Agreement: 1. The term “investment” means every kind of asset invested by investors of one Contracting Party in accordance with the laws and regulations (a) movable and immovable property and any other property rights such as mortgages, liens and pledges; (b) shares, stocks, debentures and any other kind of participation in companies; (c) claims to money or to any other performance under contract having an economic value; (d) intellectual property rights, goodwill, technical processes and know-how; and (e) concessions conferred by law or under contract, including concessions to search for or exploit natural resources. 2. The term “investors” means (a) in respect of the People’s Republic of China: (i) natural persons who have the nationality of the People’s Republic of China in accordance with its laws; (ii) economic entities established in accordance with the laws of the People’s Republic of China and domiciled in the territory of (b) in respect of Barbados: (i) natural persons who have the nationality of Barbados in accordance with its laws; or (ii)any enterprise incorporated or duly constituted in accordance with the applicable laws of Barbados and domiciled in the territory Who makes an investment in the territory of the other Contracting Party. 3. The term “domiciled” (a) in the People’s Republic of China means having the economic entities effectively managed and controlled in that territory; and (b) in Barbados means having the enterprise effectively managed and controlled in that territory 4. The term “local administrative review procedure” means the administrative procedures through which an investor of a Contracting Party 5. The term “returns” means the amounts yielded by investments such as profits, dividends, interest, royalties or other legitimate income. Article 2 Promotion of Investments 1. Each Contracting Party shall encourage investors of the other Contracting Party to make investments in its territory and admit such 2. Each Contracting Party shall grant assistance in and provide facilities for obtaining visas and work permits to nationals of the other Article 3 Protection of Investments 1. Investments and activities associated with investments of investors of either Contracting Party shall be accorded fair and equitable 2. The treatment and protection referred to in paragraph 1 of this Article shall not be less favorable than that accorded to investments 3. The treatment and protection as mentioned in paragraph 1 and 2 of this Article shall not include preferential treatment accorded by Article 4 Expropriation 1. Neither Contracting Party shall expropriate, nationalize or take similar measures (hereinafter referred to as “expropriation”) against (a) in the public interests; (b) in accordance with domestic legal procedure. (c) without discrimination; (d) against compensation; 2. The compensation mentioned in paragraph 1 (d) of this Article shall be equivalent to the market value of the expropriated investments 3. Any investor affected by the expropriation shall have a right under the law of the Contracting Party making the expropriation, to 4. Where a Contracting Party expropriates the assets of a company which was incorporated or constituted under the law in force in any Article 5 Compensation for Losses Investors of one Contracting Party who suffer losses in respect of their investments in the territory of the other Contracting Party Article 6 Guarantee 1. Each Contracting Party shall, subject to its laws and regulations, guarantee investors of the other Contracting Party the transfer (a) profits, dividends, interest and other legitimate income; (b) amounts from total or partial liquidation of investments; (c) payments made pursuant to a loan agreement in connection with investment; (d) royalties paid in respect of matters referred to in paragraph 1 (d) of Article 1 ; (e) payments for technical assistance or technical service and management fees; (f) payments in connection with projects on contract; (g) earnings of nationals of the other Contracting Party who work in connection with an investment in its territory. 2. The transfers mentioned above shall be made at the prevailing exchange rate of the Contracting party accepting the investment on the Article 7 Principle of Subrogation Where one Contracting Party or its Agency has granted any financial guarantee against non-commercial risks in regard to an investment Article 8 Disputes Concerning Interpretation or Application of Agreement 1. Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible, 2. If a dispute cannot thus be settled within six months, it shall, upon the request of either Contracting Party, be submitted to an 3. The arbitral tribunal shall comprise three arbitrators. Within two months from the date on which either Contracting party receives 4. If the arbitral tribunal has not been constituted within four months from the date of the receipt of the written notice for arbitration, 5. The arbitral tribunal shall determine its own procedure. The tribunal shall reach its decision in accordance with the provisions of 6. The tribunal shall reach its decision by a majority of votes. The decision shall be final and binding on both Contracting Parties. 7. Each Contracting Party shall bear the costs of its appointed arbitrator and of its representation in arbitral proceedings. The relevant Article 9 Settlement of Investment Disputes 1. Any dispute concerning an investment between an investor of one Contracting Party and the other Contracting party shall, as far as 2. If any dispute referred to in paragraph 1 of this Article cannot be settled within six months following the date on which the written (a) the International Centre for Settlement of Investment Disputes (ICSID) under the Convention on the Settlement of Investment Disputes (b) an arbitral tribunal to be set up under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). 3. Notwithstanding paragraph 2, the Contracting Party may require the investor to exhaust the local administrative review procedure before 4. The arbitral tribunal referred to in paragraph 2(b) of this Article shall, with respect to the procedure, follow the Arbitration Rules 5. Any arbitration under paragraph 2 shall be held in a State that is a party to the United Nations Convention on Recognition and Enforcement 6. The arbitral tribunal shall decide the issues in dispute in accordance with the provisions of this Agreement, the law of the Contracting 7. Any arbitral awards rendered pursuant to this Article shall be final and binding on the parties to the dispute. Each Contracting Party 8. In any proceeding involving an investment dispute, a Contracting party shall not assert as a defence, counterclaim, right of set-off 9. Each party to the dispute shall bear the cost of its appointed member of the tribunal and of its representation in the proceedings. 10. The investors of each Contracting Party shall have a right of access to the competent courts of the other Contracting Party for exercising Article 10 Application of Other Rules If the treatment to be accorded by one Contracting Party in accordance with its laws and regulations to investments or activities Article 11 Application of Agreement This Agreement shall apply to investments, which are made prior to or after its entry into force by investors of either Contracting Article 12 Meetings 1. The representatives of the Contracting Parties shall hold meetings if the circumstances so warrant, for the purpose of: (a) reviewing the implementation of this Agreement; (b) exchanging information about legal matters and investment opportunities; (c) resolving disputes arising out of investments; (d) forwarding proposals on promotion of investment; and (e) studying other issues in connection with investments. 2. Where the Contracting Parties agree to consultation on any matters referred to in paragraph 1 of this Article, the other Contracting Article 13 Entry into Force 1. This Agreement shall enter into force on the first day of the following month after the date on which both Contracting Parties have 2. This Agreement shall continue in force if either Contracting Party fails to give a written notice to the other Contracting Party to 3. After the expiration of the initial ten year period, either Contracting Party may at any time thereafter terminate this Agreement 4. With respect to investments made prior to the date of termination of this Agreement, the provisions of Articles 1 to 12 shall continue In witness whereof, the duly authorized representatives of their respective Governments have signed this Agreement. Done in duplicate at Bridgetown on the 20th day of July, 1998 in the Chinese and English languages, both texts being equally authentic Qian QichenOwen S.Arthur Vice-Premier of the State CouncilPrime Minister For the Government ofFor the Government of The People’s Republic of ChinaBarbados |
The Government of the People’s Republic of China
1998-07-20