The Government of the People's Republic of China and the Government of Malta (hereinafter referred to as the Contracting Parties),
Intending to create favourable conditions for investment by investors of one Contracting Party in the territory of the other Contracting Party;
Recognising that the reciprocal encouragement, promotion and protection of such investment will be conducive to stimulating business initiative of investors and will increase prosperity in both States;
Desiring to intensify the cooperation of both States on the basis of equality and mutual benefits;
Have agreed as follows:
The term "investment" means every kind of asset invested by investors of one Contracting Party in accordance with the laws and regulations of the other Contracting Party in the territory of the latter, and in particular, though not exclusively, includes:
with respect to the People's Republic of China; all the territory of the People's Republic of China, including its territorial sea and any maritime areas beyond the territorial sea that, in accordance with international law and its domestic law, China exercises sovereign rights or jurisdiction for the purpose of exploration and exploitation of natural resources thereof.
with respect to Malta, the territory of Malta as well as those maritime areas including the airspace, the seabed and subsoil adjacent to the outer limit of the territorial sea of the above territory, over which Malta exercises in accordance with international law, sovereign rights and jurisdiction for the purpose of exploration and exploitation of natural resources.
PROMOTION AND PROTECTION OF INVESTMENT
NATIONAL TREATMENT AND MOST-FAVOURED NATION TREATMENT
Without prejudice to its laws and regulations, each Contracting Party shall accord to investments and activities associated with such investments by the investors of the other Contracting Party treatment not less favourable than that accorded to investments and associated activities by its own investors.
Neither Contracting Party shall in its territory subject investments and activities associated with such investments by the investors of the other Contracting Party, as regards their management, use, enjoyment or disposal of their investments to treatment less favourable than that which it accords to investments and associated activities by investors of any third State.
If a Contracting Party has accorded special advantages to investors of any third State by virtue of its membership, in or association with a free trade area, customs union, common market, regional economic integration organisation, any arrangements for facilitating small scale frontier trade in border areas or on the basis of interim agreements leading to such unions or institutions, that Contracting Party shall not be obliged to accord such advantages to investors of the other Contracting Party.
Neither Contracting Party shall expropriate, nationalise or take other similar measures (hereinafter referred to as "expropriation") against the investments of the investors of the other Contracting Party in its territory, unless such measures are taken:
The adequate compensation mentioned in Paragraph 1 of this Article shall be equivalent to the fair market value of the expropriated investment immediately before the expropriation is taken or the impending expropriation becomes public knowledge, whichever is earlier. The value shall be determined in accordance with generally recognised principles of valuation. The compensation shall include interest at a normal commercial rate from the date of expropriation until the date of payment. The compensation shall also be made without delay, be effectively realisable and freely transferable.
Where a Contracting Party expropriates the assets of a company established in its territory, the company in which investors of the other Contracting Party own shares, the former Contracting Party shall apply the provisions of paragraphs 1, 2, and 3 of this Article, to the investors of the other Contracting Party who own these shares.
COMPENSATION FOR DAMAGES AND LOSSES
Subject to Article 3(3b), 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, insurrection, 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 and other settlements no less favourable than that accorded to its own investors or to investors of any third State, whichever is more favourable to the investor concerned.
Each Contracting Party shall subject to its laws and regulations, guarantee to the investors of the other Contracting Party the transfer of their investments and returns held in its territory, including:
If one Contracting Party or its designated agency makes a payment to its investors under a guarantee or a contract of insurance against non-commercial risks it has accorded in respect of an investment made in the territory of the other Contracting Party, the latter Contracting Party shall recognise:
DISPUTES BETWEEN THE CONTRACTING PARTIES
The arbitral tribunal shall be comprised of three arbitrators. Within two months of the receipt of the written notice requesting arbitration, each Contracting Party shall appoint one arbitrator. Those two arbitrators shall in turn, within two months, together select a national of a third State having diplomatic relations with both Contracting Parties as Chairman of the arbitral tribunal.
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 or is not otherwise prevented from discharging the said functions shall be invited to make such necessary appointments.
SETTLEMENT OF DISPUTES BETWEEN AN INVESTOR AND A HOST STATE
The Contracting Parties shall endeavour to assist in the settlement of any investment disputes regulated by this Agreement between one of the Contracting Parties and an investor of the other Contracting Party by means of a friendly settlement. Any such disputes shall be adopted in writing, including detailed information, by the investor at the same time to both Contracting Parties.
If the dispute cannot be settled through negotiations within six months from the date of the written notification of the dispute, it shall be submitted by the choice of the investor:
with respect to People's Republic of China, the investor concerned may only submit the dispute to international arbitration under the following circumstances:
If the legislation of either Contracting Party or international obligations existing at present or established hereafter between the Contracting Parties result in a position entitling investments by investors of the other Contracting Party to a treatment more favourable than is provided for by the Agreement, such position shall not be affected by this Agreement.
This Agreement shall also apply to investments in the territory of a Contracting Party made in accordance with its laws and regulations of the other Contracting Party prior to the entry into force of this Agreement. However, the Agreements shall not apply to disputes that have arisen before its entry into force.
The representatives of the Contracting Parties shall hold meetings from time to time for the purpose of, but not limited to:
ENTRY INTO FORCE, DURATION AND TERMINATION
The Contracting Parties shall notify each other of the completion of their respective legal procedure for the entry into force of the Agreement in writing. The Agreement shall enter into force on the first day of the following month after the date of the later notification and shall remain in force for a period of ten years.
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