The Government of the Republic of China and the Government of t-
he Kingdom of Swaziland, hereinafter ”the Parties”
Desiring to create favorable conditions for greater economic co-
operation and investments on the basis of the principles of equ-
ality and mutual benefit; and
Recongnizing that the promotion and reciprocal protection of su-
ch investments will be conducive to the stimulation of individu-
al business initiative and will increase prosperity in both Sta-
tes;

Have agreed as follows:

ARTICLE I
Definitions
For the purposes of this Agreement:
(a) ”investment”means every kind of asset and in particular,
though not exclusively, includes:
(i) movable and immovable property as well as other rights su-
ch as mortgages, liens or pledges;
(ii) shares in and stock and debentures of a company and any o-
ther form of interest in a company;
(iii) claims to money, or to any performance under contract hav-
ing an economic value;
(iv) intellectual and industrial property rights, in particular
copyrights, patents, utility-model patents, registered de-
signs, trade-marks, trade-names, trade and business secre-
ts, technical processes and know-how, goodwill;
(v) rights or permits conferred by law or under contract, in-
cluding concessions to search for, cultivate, extract or
exploit natural resources; The said term”investment”sh-
all refer to those investments admitted in the territori-
es of the Parties in accordance with relevant laws, regu-
lations and administrative practices. Any change in the
form in which assets are invested does not affect their
character as investments.
(b) ”returns”means the amounts yielded by an investment and in
particular, though not exclusively, includes profit, intere-
st, capital gains, dividends, royalties and fees;
(c) ”investor”means any natural person who is a national of e-
ither Party or a juristic person such as corporation, firm,
and associations incorporated or established under the law
in force of either Party.
(d) ”territory”means the territory, including the territorial
seas and any maritime areas situated beyond the territorial
seas of either Party over which its authorities exercise so-
vereign rights of jurisdiction according to relevant laws.

ARTICLE 2
Promotion of Investments
(1) Each Party shall, subject to its laws and regulations in the
field of foreign investment, encourage investments in its t-
erritory by investors of the other Party, and, subject to i-
ts right to exercise powers conferred by its laws, shall ad-
mit such investment.
(2) Each Party shall grant, in accordance with its laws and reg-
ulations, the necessary permits in connection with such inv-
estments and with the implementation of licensing agreements
and contracts for technical, commercial or administrative a-
ssistance.

ARTICLE 3
Treatment of Investments
(1) Investments and returns of investors of either Party shall
at all times be accorded fair and equitable treatment and s-
hall enjoy full protection in the territory of the other Pa-
rty. Neither Party shall in any way impair, by adopting unr-
easonable or discriminatory measures, the management, maint-
enance, use, enjoyment or disposal of investments in its te-
rritory of investors of the other Party.
(2) Each Party shall in its territory accord investments and re-
turns of investors of the other Party treatment not less fa-
vorable than treatment which it accords to investments and
returns of investors of any third State.
(3) The provisions of paragraph (2) shall not be construed so as
to oblige one Party to extend to the investors of the other
Party the benefit of any treatment, preference or privilege
resulting from:
(a) any existing or future customs union, free trade area, co-
mmon market, any similar international agreement or any i-
nterim arrangement leading up to such customs union, free
trade area, or common market to which either of the Parti-
es is or may become a party, or
(b) any international agreement or arrangement relating wholly
or mainly to taxation or any domestic legislation relating
wholly or mainly to taxation.
(4) If each Party accords special advantages to development fin-
ance institutions with foreign participation and established
for the exclusive purpose of development assistance though
mainly nonprofit activities, that Party shall not be obliged
to accord such advantages to development finance institutio-
ns or other investors of the other Party.

ARTICLE 4
Compensation for Losses
(1) Investors of either Party whose investments in the territory
of the other Party suffer losses owing to war or other armed
conflict, revolution, a state of national emergency, revolt,
insurrection or riot in the territory of the latter Party s-
hall be accorded by the latter Party treatment, as regards
restitution, indemnification, compensation or other settlem-
ent, not less favorable than that which the latter Party ac-
cords to its nationals or investors of any third State.
(2) Without prejudice to paragraph (1) of this Article, investo-
rs of either Party who in any of the situations referred to
in that paragraph suffer losses in the territory of the oth-
er Party resulting from:
(a) requisitioning of their property by the forces or authori-
ties of the latter party, or
(b) destruction of their property by the forces or authorities
of the latter Party, which was not caused in combat action
or was not required by the necessity of the situation, sh-
all be accorded restitution or adequate compensation.

ARTICLE 5
Expropriation
(1) Investments of investors of either Party shall not be natio-
nalized, expropriated or subjected to measures having effec-
ts equivalent to nationalization or expropriation (hereinaf-
ter referred to as ”expropriation”in the territory of the
other Party except in the public interest, under due process
of law, on a non-discriminatory basis and against prompt, a-
dequate and effective compensation. Such compensation shall
amount to the market value of the investment expropriated i-
mmediately before the exprop riation or before the impending
expropriation became public knowledge, whichever is earlier,
shall include interest at a normal commercial rate until the
date of payment, shall be made without delay, and be effect-
ively realizable.
(2) The investor affected thereby shall have a right, under the
law of either Party making the expropriation, to prompt rev-
iew, by judicial or other independent authorities of the Pa-
rty in accordance with the procedures established by the law
of that Party, of his or its case and of the valuation of h-
is or its investment in accordance with the principles set
out in this Article.

ARTICLE 6
Transfers of Investments and Returns
Each Party shall allow, in accordance with its laws and regulat-
ions, investors of the other Party the free transfer of payments
relating to their investments and returns, including compensati-
on paid pursuant to Article 4 and 5. Unless otherwise agreed by
the investor, transfers shall be made at the rate of exchange a-
pplicable on the date of transfer subject to the exchange regul-
ations in force, transfers shall be effected without delay in a-
ny convertible currency at the market rate of exchange applicab-
le othe date of transfer.

ARTICLE 7
Settlement of Disputes between an Investor and a Party
(1) Disputes between an investor of either Party and the other
Party concerning an obligation of the latter under this Agr-
eement in relation to an investment of the former which have
not been amicably settled shall, after a period of three mo-
nths from written notification of a claim, be submitted to
international arbitration if the investor concerned so wish-
es.
(2) Where the dispute is referred to international arbitration,
the investor and Party concerned in the dispute may agree to
refer the dispute either to:
(a) the International Court of Arbitration of the Internation-
al Chamber of Commerce in accordance with its Arbitration
Rules; or
(b) an international arbitrator or ad hoc arbitration tribunal
to be appointed by a special agreement or established und-
er the Arbitration Rules of the United Nations Commission
on International Trade Law.

If after a period of three months from written notification of
the claim there is no agreement to one of the above alternative
procedures, the dispute shall at the request in writing of the
investor concerned be submitted to arbitration at the Internati-
onal Court of Arbitration of the International Chamber of Comme-
rce. The Parties to the dispute may agree in writing to modify
the rules applicable to the arbitration.
The award shall be final binding on the Parties to the dispute.
Each Party undertakes to enforce the awards.

ARTICLE 8
Disputes between the Parties
(l) Disputes between the Parties concerning the interpretation
or application of this Agreement shall, if possible, be ami-
cably settled through consultation.
(2) If a dispute between the Parties cannot thus be settled wit-
hin a period of six months, it shall upon the request of ei-
ther Party be submitted to an arbitral tribunal.
(3) Such an arbitral tribunal shall be constituted for each ind-
ividual case in the following way. Within two months of the
receipt of the request for arbitration, each Party shall ap-
point one member of the tribunal. Those two members shall t-
hen select a national of a third State who on approval by t-
he Parties shall be appointed Chairman of the tribunal. The
Chairman shall be appointed within two months from the date
of appointment of the other two members.
(4) If within the periods specified in paragraph (3) of this ar-
ticle the necessary appointments have not been made, either
Party may, in the absence of any other agreement, invite the
Chairman of the International Court of Arbitration of the I-
nternational Chamber of Commerce to make any necessary appo-
intments. If the Chairman is a national of either Party or
if he is otherwise prevented from discharging the said func-
tion, the Vice-Chairman shall be invited to make the necess-
ary appointments. If the Vi ce-Chairman is a national of ei-
ther Party or if he too is prevented from discharging the s-
aid function, the Member of the International Court of Arbi-
tration of the International Chamber of Commerce next in se-
niorty who is not a national of either Party shall be invit-
ed to make the necessary appointments.
(5) The arbitral tribunal shall reach its award by a majority of
votes. Each Party shall bear the costs of its own member of
the tribunal and of its representation in the arbitral proc-
eedings; the costs of the Chairman and remaining costs shall
be borne in equal parts by the Parties. The tribunal may, h-
owever, in its award direct that a highter proportion of th-
is costs shall be borne by one of the two Parties. The trib-
unal shall determine its own procedure. This award shall be
final and binding on the Partes.

ARTICLE 9
Subrogation
If a Party or its designated agency makes a payment to its own
investor under a guarantee it has given in respect of an invest-
ment in the territory of the other Party, the latter Party shall
recognize the assignment, whether by law or by legal transaction
, to the former Party of all the rights and claims of the indem-
nified investor, and shall recognize that the former Party or i-
ts designated agency is entitled to exercise such rights and en-
force such claims by virtue of subrogation, to the same extent
as the original investor.

ARTICLE 10
Application of other Rules
(1) If the provisions of the law of either Party or obligations
under international law existing at present or established
hereafter between the Parties in addition to the rules cont-
ained in this Agreement, whether general or specific, entit-
ling investments and returns of investors of the other Party
to treatment more favorable than those which provided hereu-
nder Agreement, such rules shall prevail.
(2) Each Party shall observe any obligation it may have entered
into with regard to investments of investors of the other P-
arty.

ARTICLE 11
Scope of the Agreement
This Agreement shall apply to all investments, whether made bef-
ore or after the date of entry into force of this Agreement, but
shall not apply to any dispute which arose before entry into fo-
rce of this Agreement.

ARTICLE 12
Final Clauses
(1) This Agreement shall enter into force on the date when the
Parties, by an exchange of notes through diplomatic channel,
notify each other that the respective domestic legal proces-
ses required for implementation of this Agreement have been
completed.
(2) This Agreement shall remain in force for a period of ten ye-
ars. Thereafter it shall continue in force until the expira-
tion of twelve months from the date on which either Party s-
hall have given written notice of termination to the other.
(3) In respect of investment made prior to the date when the no-
tice of termination becomes effective, the provisions of ar-
ticles 1 to 11 shall remain in force with respect to such i-
nvestment for a further period of twenty years from that day
.

IN WITNESS WHEREOF the undersigned, being duly authorized there-
to, have signed this Agreement.

Done in duplicate, at Mbabane, on this third day of the March A.
D. 1998, in the English language.

For the Government of For the Government of
the Republic of China the Kingdom of Swaziland

[Signed] [Signed]
C. K. Wang Rev. Absalom Muntu Dlamini

Minister of Economic Affairs Minister of Enterprise
and Employment

Exchange of Notes
Note No. CE137

The Embassy of the Republic of China presents its compliments to
the Ministry of Foreign Affairs & Trade of the Kingdom of Swazi-
land and has the honor to refer to the Agreement between the Go-
vernment of the Kingdom of Swaziland and the Government of the
Republic of China on the Promotion and Reciprocal Protection of
Investments which was signed on March 3, 1998 and would like to
inform the esteemed Ministry that according to Article 12(1) of
the said Agreement the Government of the Republic of China has
completed its domestic processes required for implementation of
this Agreement. The Embassy accordingly kindly requests the es-
teemed Ministry to take necessary measures to complete Kingdom's
domestic legal processes required for implementation of this Ag-
reement and to notify the Embassy in due time.
The Embassy of the Republic of China avails itself of this oppo-
rtunity to renew to the Ministry of Foreign Affairs & Trade of
the Kingdom of Swaziland the assurances of its highest consider-
ation.

June 11, 1998

c.c. Ministry of Enterprise & Employment
Ministry of Economic Planning & Development [Sealed]


Note No: 5
The Ministry of Foreign Affairs and Trade of the Kingdom of Swa-
ziland presents its compliments to the Embassy of the Republic
of China and has the honour to refer to the latter's Note No. CE
137 and to advise that the Ministry has been reliably informed
by Ministry of Enterprise and Employment that the Cabinet of the
Kingdom of Swaziland approved the signing and the subsequent ra-
tification of the Agreement on the Promotion and Reciprocal Pro-
tection of Investment.

The Ministry further wishes to advise that entry into force in
accordance with Article 12(1) of the Agreement has already been
approved by Cabinet.

The Ministry of Foreign Affairs and Trade of the Kingdom of Swa-
ziland avails itself of this opportunity to renew to the Embassy
of the Republic of China the assurances of its highest consider-
ation.

MBABANE.

September 3, 1998 [Sealed]