Agreement between the Government of the People's Republic of China and the Government of the Lao People's Democratic Republic Concerning the Encouragement and Reciprocal Protection of Investments
中华人民共和国政府和老挝人民民主共和国政府关于鼓励和相互保护投资协定
ສັນຍາ ລະຫວ່າງ ລັດຖະບານ ແຫ່ງ ສາທາລະນະລັດ ປະຊາຊົນ ຈີນ ແລະ ລັດຖະບານ ແຫ່ງ ສາທາລະນະລັດ ປະຊາທິປະໄຕ ປະຊາຊົນ ລາວ ກ່ຽວກັບ ການສົ່ງເສີມ ແລະ ການປົກປ້ອງ ການລົງທຶນ ເຊິ່ງ ກັນ ແລະ ກັນ
Summary
This is the bilateral investment treaty (BIT) between China and the Lao PDR, signed at Vientiane on 31 January 1993 and in force from 1 June 1993, forming the legal foundation of the two countries' investment relationship. It requires each Contracting State to encourage and admit investments by investors of the other (Article 2), to accord fair and equitable treatment and most-favoured-nation treatment (Article 3), to refrain from expropriation except for a public purpose, under due process of law, without discrimination and against appropriate and effective compensation (Article 4), to guarantee the free transfer of investments and returns (Article 5), and to recognise subrogation (Article 6). Dispute settlement operates on two levels: State-to-State disputes go to an ad hoc arbitral tribunal (Article 7); investor-State disputes go to the host State's competent court, while disputes over the amount of expropriation compensation may be submitted to an ad hoc tribunal that may apply the ICSID Arbitration Rules (Article 8). The treaty runs for ten years and renews automatically, with Articles 1-11 surviving for a further ten years for existing investments after termination (Article 12). For Chinese investors in Laos and Lao investors in China, it is the core basis for claiming investment protection and access to investment arbitration.
Articles
Article 0
The Government of the People's Republic of China and the Government of the Lao People's Democratic Republic (hereinafter referred to as the Contracting States),
Desiring to encourage, protect and create favourable conditions for investment by investors of one Contracting State in the territory of the other Contracting State based on the principles of mutual respect for sovereignty, equality and mutual benefit and for the purpose of the development of economic cooperation between both States,
Have agreed as follows:
Article 1
Article 1 Definitions
For the purpose of this Agreement,
1. The term "investments" means every kind of asset invested by investors of one Contracting State in accordance with the laws and regulations of the other Contracting State in the territory of the latter, including mainly:
(a) movable and immovable property and other property rights;
(b) shares in companies or other forms of interest in such companies;
(c) a claim to money or to any performance having an economic value;
(d) copyrights, industrial property, know-how and technological process;
(e) concessions conferred by law, including concessions to search for or to exploit natural resources.
2. The term "investors" means:
in respect of both Contracting States:
(a) natural persons who have nationality of each Contracting State;
(b) economic entities established in accordance with the laws and regulations of each Contracting State.
3. The term "return" means the amounts yielded by investments, such as profits, dividends, interests, royalties or other legitimate income.
Article 2
Article 2 Promotion and Protection of Investment
1. Each Contracting State shall encourage investors of the other Contracting State to make investments in its territory and admit such investments in accordance with its laws and regulations.
2. Each Contracting State shall grant assistance in and provide facilities for obtaining visas and work permits to nationals of the other Contracting State to or in the territory of the former in connection with activities associated with such investments.
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